Estimating your Company’s remuneration for Workers Compensation (Victorian businesses)

Correctly estimating your company’s rateable remuneration is critical to ensuring that your WorkCover premium is correct. Some jurisdictions in Australia impose substantial penalties for companies that either don’t do this or get it wrong. On the flip side, if you have a reduced workforce or have paid less wages this could result in a handy refund to improve cashflow for the business.

Victorian employers can review or update their Estimate of Rateable Remuneration for 2020/2021 from late March 2020  via  Worksafe’s online Employer Service portal https://www.worksafe.vic.gov.au/login

Your premium renewal notice for 2020/2021 will be generated in the first week of July 2020 based on remuneration provided. If you do not update your estimated remuneration prior to 30 June 2020, projected wages will be generated by Worksafe and a renewal notice will be issued based on this. Upon receipt of your remuneration a subsequent adjustment notice will be issued amending the amount payable.

The following link outlines inclusions and exclusions for Worksafe remuneration purposes.
https://www.worksafe.vic.gov.au/remuneration-inclusions-and-exclusions

At the end of the financial year, you will be required to certify your remuneration for the prior financial year. If you do not certify your remuneration a 20% loading will be added resulting in an adjustment notice being issued identifying an increase in your premium.  

  • If you are a small employer < $200,000 you must certify your wages by March 2021

  • If you are a large employer >$200,000 you must certify your wages by October 2020

The amount you pay your workers can easily change. You must provide your WorkSafe agent with a revised estimate within 28 days of you becoming aware that:

  • what you expect to pay in remuneration is 20% or more above your current estimate, or

  • what you've actually paid in remuneration at any time before 30 April is more than your current estimate for the whole financial year.

AB Phillips understand that not all clients operate from one jurisdiction and that different rules can be complex to navigate. For expert advice and assistance with any of your Workers Compensation matters, please talk to one of our friendly staff. Call 1300 242 136 or email advice@abphillips.com.au

Kate Liptrotemployers