Premium calculations

Read about changes to the 2019-20 premium process.

Our premium system for registered employers:

  • features a simple premium calculation formula that is easy to understand
  • applies a discount upfront to the base premium of all employers
  • only includes income support costs of claims in the premium calculation for the previous year only for injuries within the previous three years, allowing employers to influence the amount of premium they pay by focusing on return to work
  • rewards any employer with a positive claims cost performance.

The average premium rate for 2018-19 is 1.70%, reduced from 1.80%.

How we calculate your insurance premium

Your insurance premium is calculated based on:

  • the annual remuneration you pay your workers, including wages, super and other allowances
  • your industry premium rate, and
  • any income support costs paid to your worker/s with time lost claims in the previous year.

An initial premium is calculated at the start of each financial year, using your estimated remuneration for the year ahead. At the end of each financial year, a premium is calculated using your actual remuneration paid for the same period.

All employers will receive a discount each year based on their base premium. If no income support costs were made in the previous year they will keep the full discount.

To estimate your premium for 2018-19, download a copy of our premium calculator and input your business details.

If you believe that a decision we have made in relation to your premium calculation is unreasonable, please call us on 13 18 55 to discuss your concerns.

Minimum premium

While all registered employers are required to pay an annual insurance premium, many sole operators and small businesses will only have to pay a minimum premium for 2018-19 of $200 (plus GST and WHS fee).

Reducing the amount of insurance premium you pay

You can directly influence the amount of insurance premium you pay.  This can be achieved by preventing injuries from happening, and if they do, assisting the injured worker to recover and return to work as quickly as possible. This helps to minimise the income support costs for a work injury claim, and therefore the premium you pay.

For free tailored advice on improving your return to work practices, contact our return to work coordinator support services on 13 18 55 or email