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PKF Australia

Accountants and Business Advisers

Important changes that might affect your business

Important changes that might affect your business

Some very significant legislative changes have been implemented recently, and your business could be affected. The changes relate to Workers Compensation and Coal Mines Insurance and could impact a range of businesses, particularly those operating in the mining sector.

Workers Compensation

On 30 June 2015, significant NSW workers compensation changes were implemented by WorkCover. Medium to large businesses with a NSW workers compensation insurance policy above $30,000 after 30 June 2015 are subject to a new and vastly different premium calculation formula.

The new premium formula is intended to reward businesses with a safe work environment, fewer claims and a strong return to work record. Businesses that struggle with claims or returning injured employees to work will be penalised. The sweeping changes also impact what is included in premium claims costs, the view of industry, size, and a host of other aspects.

Coal Mines Insurance (CMI)

There has been considerable confusion recently as to which businesses operating in the mining industry need to be covered by CMI. There has been the added complication of some businesses and contractors that fall outside of CMI’s definition of the “mining industry” not being allowed onto mine sites without a Certificate of Currency from CMI.

Who must insure with CMI?

By law, CMI may require any employer in the NSW coal industry to attain worker's compensation insurance through CMI for any of their employees working in the NSW coal mining industry.

Typically, businesses that would require worker's compensation insurance with CMI include:

  • Underground and open cut mines
  • Mining engineers and surveyors
  • Labour hire companies with employees in the coal mining industry
  • Coal preparation plants
  • Specialised mining contractors
  • Coal loaders
  • Any industry substantially concerned with the removal of coal from the pit and its transport.

CMI does not provide cover for employers involved with the subsequent treatment of coal, whether turning it into some other commodity or product, or otherwise.

What should you do?

This is a simplified explanation of the changes, and you need to ensure you fully understand them and any possible ramifications for your business. If you have any concerns about how this might be impacting your business, or if you feel that you may not have adequate coverage, don’t hesitate to contact a PKF Adviser in your location.

 

 


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