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Service Agreement Information Kit for Funded Organisations

4.8 WorkCover

Department of Health and Human Services

Who does this policy apply to?

This policy applies to organisations funded by the Department of Health and Human Services.

Policy purpose

To ensure organisations funded by the department comply with WorkCover requirements, and are aware of the support the department may provide to assist with accessing premium discounts.

Legislation and /or regulation

Organisation requirements

Under the Workplace Injury Rehabilitation and Compensation Act 2013 (the Act), organisations with a rateable remuneration level in excess of $7,500 are required to have a WorkCover policy with a WorkSafe authorised agent (insurer). A list of agents is available on the WorkSafe website (external link, opens in new window).

Under the Act employers have the following obligations:

  • where the employer is liable for a claim, the employer must pay compensation in respect of an injury arising out of or in the course of any employment determined in accordance with the Act
  • must provide information relevant to a claim for compensation in accordance with section 9 Access to information
  • must comply with the obligations of an employer specified in:
  • Part 4 Division 2—Obligations of employers
    103 Provide employment
    104 Plan return to work
    105 Consult about the return to work of a worker
    106 Return to work co-ordinator to be appointed
    107 Make return to work information available
    108 Employer to notify Authority of return to work of worker
    109 Host to co-operate with labour hire employer
  • Part 7 Actions and proceedings for damages
  • Part 10 Premiums and registration of employers 

Employers are required to meet these obligations (provide suitable employment, plan and consult about return to work, host employers supporting for return to work) ‘to the extent that it is reasonable to do so’.

WorkSafe can impose penalties when employers fail to meet their responsibilities under the Act.

Guidelines for implementing WorkCover obligations are available on the WorkSafe (external link, opens in new window) website and from authorised WorkCover agents. The WorkSafe Advisory Service can be contacted on (03) 9641 1444.

Note: An organisation's employees are not covered by the department's WorkCover policy.

Premium discount

WorkSafe offers:

  • a five per cent discount to eligible organisations where the full WorkCover premium is paid by 5 August as a lump sum instead of by instalments
  • a three per cent discount to eligible organisations where the full WorkCover premium is paid by 1 October as a lump sum instead of by instalments.

The department may advance Service Agreement funding to facilitate non-government organisations accessing the WorkCover premium discount. Where the department is a substantial income source and provides 80 per cent or more of the organisation's total income, this test will be met. Where the percentage of income provided by the department is less than 80 per cent, it will be considered on a case by case basis.

Organisations whose funding is transferring to the National Disability Insurance Scheme should consider the cash flow implications of any advance in Service Agreement funding. If an organisation’s Service Agreement funding is to be transitioned to the National Disability Insurance Authority during the current financial year, the organisation will need to repay any outstanding cash flow advancement to the department.

Organisations are to put their request for adjustments to funding cash flow in writing and address it to their departmental contact. The request is to include the following:

  • amount requested (up to the discounted premium total)
  • confirmation that the advanced cash flow is requested to obtain the discount
  • copy of the WorkCover premium statement.

Further information on the premium discount is available from the WorkSafe (external link, opens in new window) website.

For further information

Carli Moerth, Manager, Workers Compensation and Injury Management
Telephone:(03) 9096 2850
Email: carli.moerth@dhhs.vic.gov.au

Department of Education and Training

Under the Workplace Injury Rehabilitation and Compensation Act 2013 (external link, opens in a new window)(the Act), organisations with a rateable remuneration level in excess of $7,500 are required to have a WorkCover policy with a WorkSafe authorised agent (insurer). A list of agents is available on the WorkSafe (external link, opens in a new window) website.

The organisation's obligations under the Act extend to the:

  • payment of WorkCover premium by employers;
  • registration of work sites;
  • management of claims;
  • payment of compensation; and
  • assistance with return to work for employees injured in the course of their work.

WorkSafe can impose penalties when employers fail to meet their responsibilities under the Act.

Guidelines for implementing WorkCover obligations are available on the WorkSafe (external link, opens in a new window) website and from authorised WorkCover agents. The WorkSafe Advisory Service can be contacted on (03) 9641 1444.

Note: A funded organisation's employees are not covered by the Department of Education and Training’s (DET) WorkCover policy.

Premium discount

WorkSafe offers:

  • a five per cent discount to eligible organisations where the full WorkCover premium is paid by 5 August as a lump sum instead of by instalments
  • a three per cent discount to eligible organisations where the full WorkCover premium is paid by 1 October as a lump sum instead of by instalments.

Further information on the premium discount is available from the WorkSafe (external link, opens in a new window) website.

For further information

Florence Kaur, Senior Policy Officer, System Quality Unit, Strategy and Integration Division, Early Childhood and School Education Group
Telephone: 03 9651 3242
Email: kaur.florence.g@edumail.vic.gov.au