Employer payments

Replacing the existing levy system – a new approach to employer payments

From 1 July 2012, WorkCover’s existing levy system will be replaced with a new employer payment system which changes the way payments are calculated for some registered employers. As part of this change ‘levies’ will now be called ‘premiums’. The new premium calculations reflect the size of an employer, the level of risk for the employer’s industry and where appropriate, the employer’s individual claims experience. 

Key aspects of the new employer payment system: 

1. Small employers will have no change to the way their premiums are calculated.
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2. Medium and large employers will have their premiums calculated in a new Experience Rating System.
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3. An optional arrangement will be introduced for large employers on an application basis. This arrangement is called Retro-Paid Loss.
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4. The new system does not apply to private and Crown self-insurers, however, some legislative changes will impact them.
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5. All employers will see some changes to terminology, definitions and practices within the Scheme aimed at achieving cultural change.
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In addition to the introduction of a new employer payments system, there are a range of other amendments employers need to be aware of. Click here for more details 

Status update - February 2012

Legislative matters 
WorkCover began a consultation process with key stakeholders in late 2010, seeking input into the design of a proposed new approach to employer payments for South Australia. Based on the outcomes of this consultation process WorkCover developed a Position Paper on the proposed new system, which was published in July 2011. 

This position paper formed the basis of an Amendment Bill that was introduced into Parliament on 28 September 2011 by the Hon Jack Snelling MP, Minister for Workers’ Rehabilitation. 

On 28 October 2011 the Minister presented an open letter to interested parties that proposed some further changes to the Bill. These changes have been incorporated into the subsequent Amendment Act, which was passed by the South Australian Parliament on 1 December 2011. 

The Amendment Act comes into effect on 1 July 2012, however, it enables WorkCover to start preparing for the new system from 1 January 2012. 

Supporting regulations and documentation
Supporting regulations and gazette documents are currently being finalised in consultation with key stakeholders. 

The documents (Gazettals) will be subject to consideration and approval by the Minister for Workers’ Rehabilitation, while the Regulations (which are prepared by Parliamentary Counsel) will be approved by Cabinet. 

All supporting documents will need to be finalised by March 2012 for implementation of the new approach on 1 July 2012.

Please continue to return to this page for progress updates. 

Documents about the new system

The documents below are listed in date order so readers can see the sequential changes and issues that were discussed during the consultation process and the Parliamentary process. 

* Denotes new or recently added document 

Title of document	Released
Discussion paper: Introducing an Experience Rating System for medium and large employer	Jan 2011
Discussion paper: Introducing a Retro-Paid Loss System for large employers	Jan 2011
Position paper	Jul 2011
Stakeholder consultation overview - overview of consultation response	Jul 2011
Employer Payments - Questions & Answers regarding the Amendment Bill	Oct 2011
Open letter from the Hon. Jack Snelling MP	Oct 2011
Position paper update	Dec 2011
The Workers Rehabilitation and Compensation (Employer Payments) Amendment Act 2011	Dec 2011
The Workers Rehabilitation and Compensation (Employer Payments) Amendment Act 2012 - including explanatory margin notes	Jan 2012
Guide to the changes	Jan 2012
Experience Rating System pack - For registered employers	Jan 2012
Retro-Paid Loss Arrangement pack - For interested employers	Jan 2012
Self-Insured Changes Pack - For self-insured employers	Jan 2012
* Experience rating system presentation	Feb 2012
* Retro-paid loss presentation	Feb 2012
* Changes impacting self-insured employers presentation	Feb 2012
* Questions and answers from information and consultation sessions	Feb 2012

Queries 

If you have any questions please email employerpayments@workcover.com or contact WorkCover's service centre on 13 18 55.