In NSW the State Insurance Regulatory Authority (SIRA) has recovered $10M in underpaid premiums. SIRA identified 81 employers suspected of being underinsured for workers compensation, primarily due to under-declaring wages. This was achieved through direct employer engagement and predictive data modelling. Following our Wage Declarations & Adjusted Premiums article last month, SIRA’s actions act as a timely reminder for all Australian businesses to ensure they provide accurate actual wage declarations to avoid fines/penalties or interest.
SIRA Findings
Of the 81 employers, 7 employers were managed directly by the SIRA Inspectorate, while 74 were referred to SIRA’s Employer Enforcement team for further investigation and regulatory action.
As a result of this proactive initiative, nearly $450 million in additional wages have been declared, leading to over $10 million in increased workers compensation premiums.
Penalty infringement notices were issued to employers, including a broker, for failing to submit accurate wage declarations on time.
SIRA identifies potential cases of under-insurance through predictive modelling, which analyses claims and policy data. This may warrant further investigation and a deeper analysis of the employer’s policy and wage data.
Employers who fail to submit accurate wage declarations or otherwise unlawfully avoid paying appropriate workers compensation premiums place an increased financial burden on the scheme.
The proactive efforts of SIRA are essential in maintaining the sustainability and integrity of the Workers Compensation Scheme. This approach reinforces SIRA’s commitment to regulatory compliance and fairness.
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Contact our team for assistance in the declaration of actual wages or other workers compensation related matters.
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Source: SIRA
Title: SIRA recovers more than $10 Million in premiums from under-insured employers
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