As most of you will be aware, the Australian Government has implemented a JobKeeper payment which is designed to help keep Australians in jobs and support businesses affected by the significant economic impact caused by COVID-19. Around 6 million workers are expected to receive a fortnightly payment of $1,500 (before tax) through their employer.

Many of you have raised questions on how this could potentially impact your Workers Compensation Premiums and your Injured Workers weekly entitlements.

Please see below important information released by SIRA yesterday and confirms our previous advice relating to the JobKeeper payment:-

Weekly payments of compensation

Under Division 2 of Part 3 of the Workers Compensation Act 1987, a worker’s weekly compensation payment is referable to the workers average weekly earnings prior to their injury and the amount the worker is earning (or has the capacity to earn) while they are recovering from their injury.

It has been determined that any JobKeeper payment made to a worker prior to the worker’s injury will be considered earnings for the purposes of determining the worker’s average weekly earnings prior to injury.

It has been determined that any JobKeeper payment made to a worker while they are recovering from a work-related injury will be considered earnings for the purposes of determining the weekly payment of compensation to which the worker is entitled.

This approach will minimise the financial impact on injured workers who receive JobKeeper payments, provide certainty for employers and workers, and enable efficient payment of benefits by insurers.

Workers compensation premiums

An employer’s workers compensation premium is calculated based on the wages paid by the employer during the period to which the related workers compensation policy applies. The extent to which JobKeeper payments made by employers are considered ‘wages’ will impact the calculation of workers compensation premiums.

It has been determined that JobKeeper payments made to workers who performed no work during the period to which the payment relates will be excluded from the amount of wages used to calculate premium.

This decision has been taken on the basis that workers who do not perform any work are at a significantly reduced risk of sustaining a work-related injury compensable under the workers compensation system, and payments to these workers should therefore not impact premium.

It has been determined that JobKeeper payments made to workers who continue to perform work (whether in their usual or a reduced or otherwise augmented capacity) will continue to be included in the amount of wages used to calculate premium.

This decision has been taken on the basis that workers who continue to perform work continue to be at risk of sustaining a work-related injury compensable under the workers compensation system, and payments to these workers should therefore continue to impact premium.

We remain in close contact with SIRA and icare and will ensure that you receive the most up to date information and advice.

For anyone who has any additional questions on this or any other workers compensation matter please do not hesitate to reach out to any one of our team by calling (02) 9587 3500 or emailing us at WCPremium@wsib.com.au

Stay safe!