ABILITY GROUP has been communicating with regulatory bodies and insurers to understand the impact of JobKeeper to our clients. There are 2 ways in which JobKeeper payments are expected to impact the workers compensation system in NSW.
JobKeeper payments impact as follows:
- The calculation of injured workers’ weekly payments of compensation
- The calculation of workers compensation premiums for employers
In NSW SIRA has just released their determination in this regard. Weekly payments to any worker with a compensable injury will have this payment considered as earnings for the purposes of determining the weekly payment. It has also been determined that any JobKeeper payment made to a worker prior to the workers’ injury will be considered earnings for the purposes of determining the workers average weekly earnings prior to injury.
With regard to NSW Workers Compensation Premiums, an employers premium is calculated on the wages paid by the employer. The extent to which JobKeeper payments made by employers are considered wages will impact the calculation of workers compensation premiums.
It has been determined that JobKeeper payments made to workers who performed no work during the period to which the payment relates will be excluded from the amount of wages used to calculate premium.
It has been determined that JobKeeper payments made to workers who continue to perform work (whether in their usual or a reduced or otherwise augmented capacity) will continue to be included in the amount of wages used to calculate premium.
The Workers Compensation Market Practice and Premium Guidelines have been updated and issued by SIRA are attached for your reference.
We recommend that employers keep appropriate records and information to this effect, our team at ABILITY GROUP are here to support and can assist with wages declarations for premium purposes.
Source: Sate Insurance Regulatory Authority (SIRA)
Title: 2020 Workers compensation market practice and premium guidelines
Read Time: 10 Minutes