Workers Compensation Amendment (Premiums) Regulation 2016 (NSW)

New South Wales

Workers Compensation Amendment

(Premiums) Regulation 2016

under the

Workers Compensation Act 1987

His Excellency the Governor, with the advice of the Executive Council, has made the following

Regulation under the Workers Compensation Act 1987.

VICTOR DOMINELLO, MP

Minister for Innovation and Better Regulation

Explanatory note
The object of this Regulation is to amend the Workers Compensation Regulation 2010 as a consequence of the amendments made by Schedule 5 to the State Insurance and Care Governance Act 2015 to the Workers Compensation Act 1987 that enable the State Insurance Regulatory Authority to issue Workers Compensation Market Practice and Premiums Guidelines that replace the scheme for setting insurance premiums by insurance premiums orders.

This Regulation is made under the Workers Compensation Act 1987, including section 280 (the general regulation-making power).

Workers Compensation Amendment (Premiums) Regulation

2016

under the

Workers Compensation Act 1987

1      Name of Regulation

This Regulation is the Workers Compensation Amendment (Premiums) Regulation
2016.

2      Commencement

This Regulation commences at 4 pm on 30 June 2016 and is required to be published on the NSW legislation website.

Schedule 1 Amendment of Workers Compensation
Regulation 2010

[1]      Clause 3 Definitions

Omit “insurance premiums order for the time being in force applies” wherever occurring in paragraphs (a) and (b) of the definition of category 1 employer in clause 3 (1).

Insert instead “Workers Compensation Market Practice and Premiums Guidelines apply”.

[2]      Clause 3 (1) (definition of “category 1 employer”)

Omit “that order” wherever occurring in paragraphs (a) and (b).
Insert instead “those guidelines”.

[3]      Part 12, heading

Omit “WorkCover Authority”. Insert instead “Workers Compensation Operational”.

[4]      Clause 67

Omit the clause. Insert instead:

67 Definitions

In this Part:
basic tariff premium and dust diseases contribution have the same meanings
respectively as they have in the Insurance Premiums Order 2015–2016 and
the Workers Compensation Market Practice and Premiums Guidelines in force
in respect of the relevant financial year.

[5]      Clause 68 Definition of “premium income” for purposes of insurers’ contributions

Omit “an excess surcharge factor or”.

[6]      Clause 69 Definition of “deemed premium income” for purposes of self-insurers’ contributions

Omit clause 69 (1). Insert instead:

(1) For the 2016–2017 financial year, the prescribed circumstances referred to in the definition of deemed premium income in section 37 of the 1998 Act are the circumstances in which the amount payable as premiums referred to in that definition is calculated in the manner fixed by the Insurance Premiums Order 2015–2016.

[7]      Clause 70 Alternative contribution by self-insurers

Omit the clause.

[8]      Clause 143A

Insert before clause 144:

143A Application of Part

This Part is subject to the Workers Compensation Market Practice and
Premiums Guidelines.

[9]      Clause 144 Definitions

Insert “before the repeal of that section” after “1987 Act” in the definition of retro-paid loss premium policy.

[10]      Clause 147 Employer to supply insurer with return relating to wages—standard policies

Omit “relevant insurance premiums order that applies” from clause 147 (4).

Insert instead “Workers Compensation Market Practice and Premiums Guidelines that apply”.

[11]      Clause 151

Omit the clause. Insert instead:

151 Employer to give insurer notice of input tax credit entitlement

An employer must, prior to the commencement of the period of insurance for which a premium is to be calculated, notify the insurer concerned in writing of the employer’s input tax credit entitlement.

[12]      Clause 152 Definitions

Insert “but before 4 pm on 30 June 2016” after “30 June 2015” in paragraph (a1) of the definition of cost of claims in clause 152 (1).

[13]      Clause 152 (1) (definition of “cost of claims”)

Insert after paragraph (a1):

(a2) in relation to an injury year related to, or a period of insurance for, a policy issued or renewed so as to take effect on or after 4 pm on 30 June 2016—the amount calculated in accordance with the Workers Compensation Market Practice and Premiums Guidelines, and

[14]      Clause 154 Cost of an individual claim

Omit “or 30 June of any subsequent year” from Column 1 of the Table to the clause.

[15]      Clause 154, table

Insert at the end of the table:

30 June 2016 or 30 June of any subsequent year The amount specified in the Workers
Compensation Market Practice and Premiums
Guidelines that applies to the policy concerned

[16]      Clause 157 Effect of certificate

Omit “subclauses (2) and (3)” from clause 157 (1). Insert instead “subclause (3)”.

[17]      Clause 157 (2)

Omit the subclause.

[18]      Clause 160 Notice of premium calculation

Omit “an insurance premiums order applies” from clause 160 (1).

Insert instead “the Workers Compensation Market Practice and Premiums Guidelines apply”.

[19]      Part 18, Divisions 6 and 7

Omit the Divisions.

[20]      Clauses 168 (1) (b) and 170 (1) (b)

Omit “insurance premiums order for the time being in force” wherever occurring.
Insert instead “Workers Compensation Market Practice and Premiums Guidelines”.

[21]      Clauses 169 (4) and 171 (4)

Insert “or the Workers Compensation Market Practice and Premiums Guidelines” after
“relevant insurance premiums order” wherever occurring.

[22]      Schedule 3 Mandatory provisions in employer’s insurance policy

Omit “relevant Insurance Premiums Order (unless this Policy is exempt from Insurance
Premiums Orders)” from clause 7 of Part 2.

Insert instead “Workers Compensation Market Practice and Premiums Guidelines”.

[23]      Schedule 3, note 1

Omit “relevant insurance premiums order”.
Insert instead “Workers Compensation Market Practice and Premiums Guidelines”.

[24]      Schedule 3, note 2

Omit the note.

[25]      Schedule 8 Savings and transitional provisions

Insert after Part 4:

Part 5 Provisions consequent on making of Workers
Compensation Amendment (Premiums) Regulation
2016

40 Insurance premiums orders

Any amendment (other than this clause) made by the Workers Compensation Amendment (Premiums) Regulation 2016 that applies in relation to insurance premiums orders in force immediately before the commencement of the amendment does not apply in relation to any insurance premiums orders referred to in clause 2 (1) of Part 19J of Schedule 6 to the 1987 Act.