- Who needs a Policy?
- Obtaining a New Policy
- Transferring your Current Policy to GIO
- Renewing a Policy
- Paying your Premium
- How to Calculate your Premium
- What's included in Remuneration
- Your Premium Obligations
- Certificates of Currency
Who needs a Policy?
You need a WorkCover Insurance Policy if you:
- Employ workers and pay or expect to pay more than $7,500 a year in remuneration (this includes wages, benefits and superannuation) OR;
- Engage apprentices or trainees
However, if one of your workers makes a claim for compensation you will be required to register for workplace injury insurance and pay a registration fee of $137.
If you do not have a policy when you should, you could be heavily penalised and face the full costs of any claims incurred while you were uninsured.
Obtaining a New Policy
Otherwise, please complete this GIO Applying for Workcover Insurance Policy and email it back to us or download it and send it to:
The Premium Services Team
GIO Workers' Compensation (Victoria) Limited
PO Box 4426
Melbourne, VIC 3004
Or fax it to: 1300 765 194
Failure to obtain a WorkCover insurance policy when required can result in severe penalties being imposed.
You may wish to request for a quote of your premium. Note that premium is set by Victoria WorkCover Authority legislation and are consistent across all agents.
Transferring your Current Policy to GIO
We will assist you to transfer your current policy to GIO in the easiest way possible. All you need to do is fill out the GIO Change in Authorised Agent WorkCover Form and we will take care of:
- Notifying the previous Agent
- Notifying the Victorian WorkCover Authority
Note that you are only qualified to transfer your policy if:
- You have no outstanding premium instalments
- You have been with your current agent for at least 12 months. Otherwise, you can transfer your policy at the start of a new financial year. The transfers are actioned on the 1st working day of the month following receipt of the GIO Change in Authorised Agent WorkCover Form
Please fill out the Request for Change of Authorised Agent Workcover Form and mail it to:
The Premium Services Team
GIO Workers' Compensation (Victoria) Limited
PO Box 4426
Melbourne, VIC 3004
Or fax it to: 1300 765 194
Renewing a Policy
Policies are automatically renewed annually on 30 June each year, unless employers provide written confirmation of cessation of employment.
It is important that actual wages are submitted by 31 July to enable us to accurately determine your premium.
The policy renewal period will take place from early September, with the first premium payments due on 1 October.
Paying your Premium
You can pay your premium in a variety of ways including a one-off payment in advance at a discount or in instalments - monthly or quarterly. For more information on premium payment options please visit WorkSafe Victoria.
Each year GIO will send you an invoice which will include your payment options.
It is important to remember that late payments will attract a penalty of 1.104% per month on the outstanding premium amount, compounding monthly. If you incur this penalty your instalment plan could also be cancelled making the remaining premium for the whole year due immediately.
How do I Choose the Buy-out Option?
Under normal circumstances, an employer is responsible for the first ten days of weekly benefits for an injured worker who is off work, and the first $546 (indexed annually on 1 July) of reasonable medical and related expenses.
However, you can remove this liability if you choose to take up the buy-out option by paying an additional loading of 10% of your premium.
How to Calculate your Premium
Premium is calculated on your annual remuneration and your premium rate, that is: Annual Remuneration x Premium Rate. For more information please visit WorkSafe Victoria.
Under the new calculation method your WorkCover premium is no longer calculated at a workplace level.
Annual remuneration is based on the information provided by you.
If you are a small employer your premium rate is based on the industry rate.
However, if you are an employer with remuneration of more than $200,000 your premium rate will be calculated taking your claims performance into consideration. If your claims experience is better than industry your premium rate will be below the industry rate and vice versa.
The steps involved in the calculation are:
- Each year an employer's starting point for premium rate calculation will be their industry rate.
- Movement above or below the industry rate will be determined by your claims performance relative to your industry and the size of your organisation.
For more details please refer to the WorkCover Premium Calculation Method Effective 2005 (PDF 66KB).
What's included in Remuneration
At the end of the current financial year, you will be sent a Declaration of Rateable Remuneration Form and asked to supply your certified actual remuneration to us. Please complete this form and submit it to GIO by 1st August. This form is used to certify your remuneration for the financial year just completed and to provide an estimate of your Annual Remuneration for the coming year.
Please be aware that the VWA conducts regular audits of employers to determine the accuracy of the information provided.
Remuneration includes all salaries, wages, commissions, bonuses, superannuation and fringe benefits tax. It is the gross amount before tax. As remuneration means more than just salaries and wages for WorkCover purposes, it is important to use the Workplace Injury Insurance 2005-06 Remuneration checklist provided and understand the remuneration components as defined by the VWA to ensure the correct amount is recorded. Forms are sent to employers on an annual basis for completion.
As mandated by the VWA, if you do not certify your remuneration for the year just completed by the 1st August, your Annual Remuneration will be deemed to be 20% higher than your most recent certified remuneration.
Please be aware that if your actual remuneration for the year just completed is more than 20% above your previously advised estimate, then you may be penalised up to 100% of the difference in premium.
If you do not return your form, we will use an estimate of your remuneration to calculate the coming financial year's premium. This estimate is based on the most recently available data on your business plus 10%. This amount is added to cover wage increases and business growth (extra staff).
However, even if you have not returned the form by the due date you should still provide a remuneration estimate to us as soon as possible, so that your premium can be adjusted to reflect the correct remuneration.
You must also provide us with a revised estimate within 28 days if, at any time during the year, you become aware that:
- what you expect to pay in remuneration is 20% above your current estimate, or
- what you have actually paid in remuneration (prior to 30 April) is greater than your current estimate
You may also advise us if your actual remuneration during the policy period will be less than your latest estimate of remuneration. Your future premium instalments can then be adjusted in line with the reduced remuneration. However, you need to be sure that your expectations of reduced remuneration are realistic.
Your Premium Obligations
All employers are required to provide a safe and healthy working environment to their employees and contractors as this will impact on the premium you pay.
As an employer, there are certain obligations to take into consideration. These include:
- Ensuring you have a WorkCover policy in place with a VWA agent of your choice (unless your annual payroll is expected to be $7,500 or less)
- Ensuring you have a WorkCover policy in place if you employ apprentices and trainees, regardless of your annual payroll
- If you commence to have workers based at or controlled from an additional site, you must complete an Application to Add a Workplace to A Workcover Insurance Policy (PDF 159KB) and fax or mail it to GIO within 14 days
- Notifying us of any workplace or activity changes because these can affect your premium
- Notifying us of remuneration increases in excess of 20%
- Certifying your remuneration at the end of each financial year by 1 August
- Paying the premium by due date as shown on your invoice
- Notifying us of any changes in your address or contact details
For further information please read What are my Obligations as an Employer.
Certificates of Currency
Why an Employer May Need a Certificate of Currency
A third party, such as a trading partner, may ask you to obtain a Certificate of Currency as proof that you hold a current workers compensation policy. Certificates of Currency are valid for the financial year in which they are obtained.
How to Request a Certificate of Currency
If you require a Certificate of Currency, please contact us on (03) 9860 3555.
Next Steps
- Victoria customers, apply for cover note online
- Call us on (03) 9860 3555 Monday to Friday between 9am and 5pm EST for further information.
- Or Email Us
- Find out more about your workers compensation responsibilities in Victoria at the WorkSafe Victoria website.