In general levies are calculated by multiplying the total remuneration paid during a month or year by the WorkCover levy rate. The formula is: Remuneration x the levy rate = Levy due.
Your total levy rate
Your invoice is based on several factors:
- The average annual levy rate
- Your base industry rate
- Your bonus or penalty percentage (adjustments to the base industry rate)
- The 'buy-out' percentage (optional)
- GST
- The OHS&W registration fee percentage (0.6% for 2008-09 financial year), collected on behalf of the South Australian Government
An example of how a levy rate is calculated when applied to a small business is included in the levy calculations page.
Average levy rate
Each year the WorkCover Board reviews the Scheme's performance, including its assets and liabilities, then sets the average levy rate (ALR). Industry-wide rates are then calculated and adjusted to take account of the general claims performance of that industry.
For the current financial year, the average levy rate is three per cent of the total remuneration paid to workers by the employer. The minimum levy is $50.00 (plus GST and plus OHS&W fee) for each financial year.
Industry rates
Your industry class is determined by your predominant business activity in all locations. The levy rate for that class of industry becomes the base rate when the levy is calculated. It is important to advise WorkCover of any changes to your registration details, especially any changes in activity, as this may lead to a re-assessment of your classification, and therefore your levy rate.
The rate determined by your industry classification is then further adjusted by bonus or penalty to reflect the specific claims performance of your business.
Buy-out option
As an employer you are required to pay the first two weeks of income maintenance to an injured worker in a calendar year. You can elect to buy-out this obligation. If you choose the buy-out option it will be incorporated in your levy rate.
For more information view the Employer FAQs on this subject, contact us to make an enquiry or phone our Service Centre on 13 18 55.