The target premium collection rate for 2017-18 is

3.25%

Pricing and calculation

Policy premiums are collected to cover the cost of claims and associated expenses when someone is injured at work.

The premium you pay for your workers compensation policy is determined by a number of different factors.

These include:

Calculating your premium

Your base premium is determined by multiplying your wages by your risk category rate. That premium is then adjusted for your size (based on your wage roll) and finally, discounted or increased based on how your claims experience compares to the other employers in your risk category.

Your premium calculation sheet that is sent with your renewal notice each year clearly sets out the premium formula and enables you to see how your performance compares to others in your policy risk category. It also provides you with a clearer view of how your own injury prevention and injury management performance affects your final premium rate.

The minimum premium rate

The minimum premium rate ensures all employers pay their fair share of the Scheme’s administration costs. This includes the fixed costs of underwriting each policy and other non-claim related expenses.

For the 2016-17 policy year the minimum premium rate is set at 0.80 per cent.

The minimum rate will increase to 0.85 per cent from 30 June 2017.

Policy risk categories

On 30 June 2016, we introduced six new policy risk categories to better reflect the specific risk exposures associated with different activities undertaken across the industry.

The new risk categories are:

Policy risk category Description
Open Cut Mine All activities undertaken by operators, contractors and labour hire in the pit and surrounding areas of an open cut mine site which are necessary for the extraction of coal.

Activities include but are not limited to the following:

  • Repair, maintenance and inspection of open cut machinery and equipment (not carried out in a workshop)
  • Dragline and excavator operations
  • Haul truck, water cart, dozer, grader, loader and light vehicle operations
  • Explosives/shotfiring activities
  • Blasting/drilling operations
  • Installation, maintenance and inspection of pumping systems, electrical systems
  • Engineering and mining technician activities
  • Supervision and training of staff on open cut mines
  • Consultants who go onto mine sites to inspect, collect samples and provide advice.
Underground Mine All activities undertaken by operators, contractors and labour hire on an underground mine site and surrounding areas which are necessary for the extraction of coal.

Activities include but are not limited to the following:

  • Development mining operations
  • Longwall mining operations
  • Installation, maintenance and inspection of ventilation systems, water and air systems, pumping systems, conveyer systems, electrical systems
  • Operation, repair, maintenance and inspection of underground machinery and equipment (not carried out in a workshop)
  • Conducting drilling operations
  • Conducting shotfiring operations
  • Engineering and mining technician activities
  • Material handling operations
  • Supervision and training of staff on underground mines
  • Consultants who go underground to inspect, collect samples and provide advice.
Operational Mining Services – Onsite All activities undertaken in workshops, coal preparation plants, coal washeries, coal loaders on a mine site.

Activities include but are not limited to the following:

  • Coal prep plant/washery operation
  • Coal prep plant/washery repair and maintenance
  • Installation, maintenance and inspection of electrical systems
  • Operation, repair, maintenance and inspection of mining machinery and equipment in workshops located on a mine site
  • Supervision of activities in workshops, coal prep plants, coal washeries, coal loaders.
Operational Mining Services – Offsite All activities undertaken in workshops, coal preparation plants, coal washeries, coal loaders not on a mine site.

Activities include but are not limited to the following:

  • Coal prep plant/washery operation
  • Coal prep plant/washery repair and maintenance
  • Operation, repair, maintenance and inspection of mining machinery and equipment in workshops not located on a mine site
  • Supervision of activities in workshops, coal prep plants, coal washeries, coal loaders.
Administration – Onsite Administration activities undertaken on a mine site.

Activities include but are not limited to the following:

  • All administration activities related to the running of a mine
  • Consultancy activities carried out in an office or building on a mine site (any activities carried out related to consultancy in the pit, underground or in a workshop must also be declared as a percentage under the relevant risk category)
  • Training activities (any activities carried out related to training in the pit, underground or in a workshop must also be declared as a percentage under the relevant risk category)
  • Information technology
  • Project work (any activities carried out related to project work in the pit, underground or in a workshop must be declared as a percentage under the relevant risk category)
Administration – Offsite Administration activities undertaken not on a mine site.

Activities include but are not limited to the following:

  • All administration activities related to the running of a mine
  • Consultancy activities carried out in an office or building not on a mine site
  • Laboratory & testing
  • Information Technology

From 30 June 2016 we no longer offer separate categories for Labour Hire, Consultants or Contractors.