Premium calculations
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 for claims for the previous year relating to 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 2024-25 is 1.85%.
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.
The premium for newly registered employers is calculated based on the estimated remuneration you provide as part of your registration.
Thereafter, your premium is calculated at the start of each financial year, using the information you provide in your employer remuneration return.
When you complete your employer remuneration return you can choose to have your premium calculated using the actual remuneration paid or payable to workers from the previous financial year, or the estimated remuneration that will be payable to workers for the year ahead.
If you believe that a decision we have made in relation to your premium calculation is unreasonable, please call us on 13 18 55 between 8:30am and 5:00pm Monday to Friday or email premium@rtwsa.com 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 2024-25 of $200, subject to any rounding (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 service on 13 18 55 or email coordinators@rtwsa.com.
Date printed: 21 Dec 2024
