Table 7.3: Approval process, application and ongoing costs and duration of licence

 Applications processApplication and ongoing costsDuration of license
NSWA Self Insurer is required to complete a  self-insurer application form and provide the information outlined in the  self-insurer information requirements document to   selfspecialisedinsurers@sira.nsw.gov.au 

One-off cost on application of $40,000 for Single Self-Insurer licence, $45,000 for Group Self-Insurer licence.

Insurers must contribute to the Workers Compensation Operational Fund under  Workplace Injury Management and Workers Compensation Act 1998 , s 39 and to the Dust Diseases Fund under   Workers’ Compensation (Dust Diseases) Act 1942 , s 6   on an annual basis.

A licence will be granted for a standard period of 3 years and be capable of renewal for further terms of up to 8 years. SIRA has discretion to grant licences for shorter terms if it believes circumstances are warranted.
Vic

s 375 Workplace Injury Rehabilitation and Compensation Act 2013 — Assessment of organisation’s eligibility to apply is  undertaken :

  • the  body corporate must be the ultimate holding company in Australia, and
  • must satisfy prescribed minimum requirements as to financial strength and viability.

If eligible, the organisation  may apply for approval to WorkSafe Victoria. The application’s assessment may include on-site audits, interviews and inspections. Pre-application eligibility fee must be paid as prescribed in  the Schedule 6 of the Act. As at 1 July 2021 this is $1,080 inclusive of GST.

An application fee must be paid by the organisation as prescribed in Schedule 7 of the WIRC Act. The maximum fee payable is $69,360 (as at 1 July 2021 and subject to indexation).

A self-insurer must pay contributions into the WorkCover Authority Fund in accordance with  s388 of the WIRC Act. Quarterly contributions payable by a self-insurer are determined by WorkSafe Victoria based on the rateable remuneration return submitted by a self-insurer pursuant to the Ministerial Order made under  s380(3) of the WIRC Act.

The amount of contributions payable by a self-insurer pursuant to  s388 of the WIRC Act is determined by the formula given in  Reg 14 of the Workplace Injury Rehabilitation and Compensation Regulations 2014.

s 382 WIRC Act

Initial approval is for a period of 3 years and any subsequent approvals are for 4 years unless WorkSafe Victoria in its discretion determines that approval has effect for a period of 6 years.

Qld

s 70 Workers’ Compensation and Rehabilitation Act 2003 — The application must:

  • be  made to the Workers’ Compensation Regulator in the approved form, and
  • for a group employer be made by all the members of the group wanting to be licensed, and
  • be accompanied by the fee prescribed under a regulation .

s 77 — Regulator must decide an application within 6 months of receiving it. 

s 71 — Regulator may issue or renew a licence to be a self-insurer to a single employer only if satisfied that certain criteria have been met.

s75 — in deciding whether a single employer or group employer is fit and proper, the Regulator may consider any relevant matter and must consider certain matters.

Initial application fee for setting up the licence:

  • 15,000 fee  units* for single employers, and
  • 0,000 fee units * for group employers.

s 70 Workers’ Compensation and Rehabilitation Act 2003 

s 16 Workers’ Compensation and Rehabilitation Regulation 2014 

  • A self-insurer must also pay a levy to the Regulator each financial year under  s 81 of the Workers’ Compensation and Rehabilitation Act 2003 . The amount a self-insurer must pay is calculated  according to the formula in  s 17 ( Workers’ Compensation and Rehabilitation Regulation 2014 ) and is dependent on their estimated claims liability, and the levy rate set by the Regulator.

* From 1 July 2023, 1 fee unit = $1.060

s 78 Workers’ Compensation and Rehabilitation Act 2003 — Original licence issued for a period of 2 years, on renewal, licence period can be up to 4 years.
WA

Employer submits application to WorkCover WA.

WorkCover WA reviews and considers the application for self-insurer status and provides recommendation on the application to the Minister.

The Governor, on the Minister’s recommendation, may exempt an employer.

Self-insurers must contribute annually to the Authority’s General Account. The contribution is a percentage (fixed by the Authority) of the total amount of the notional premium of the self-insurer. The minimum contribution is $40,000.No initial duration, however ( s 165 Workers’ Compensation and Injury Management Act 1981 ) requires that self-insurance arrangements be reviewed at least once a year or when so required by the Minister. The review of an exemption will be based on adherence to the conditions of approval set by WorkCover WA.
SA

An indicative time line for the process and requirements is outlined in the  Code of Conduct for Self-Insured Employers. 



 

ss129-133 Return to Work Act 2014 

An application fee of $10,000 (plus GST) plus $15 (plus GST) for each worker employed by the employer, or group of employers at the time of the application is fixed as the fee that must accompany an application for registration as a self-insured employer, or group of self-insured employers.

The maximum fee payable is $40,000 (plus GST). Return to Work Regulations 2015 —  Reg 53 .

Registration as a self-insured employer (license) granted for an initial period (not exceeding 3 years). A self-insurer may apply to ReturnToWorkSA to renew its registration for further periods. Further periods may not exceed years ( s129(5)(f) and  Code of Conduct for Self-Insured Employers ).
Tas

An employer must apply to WorkCover Tasmania Board with the approved self-insurer form ( Workers Rehabilitation and Compensation Act 1988 s104 ) with:

  • a  completed financial indicators form
  • a desktop review of financial information by an independent expert
  • copies of the organisation’s last 3 annual reports
  • evidence of high level safety management practices
  • evidence of high level injury management practices
  • evidence of high level claims management practices, and
  • evidence of the organisation’s capacity to meet the necessary data reporting requirements.

Permit conditions 

How to apply for a permit to insure (self-insurer) 

No application fee. However, the applicant is responsible for paying all expenses associated with applying for a self-insurer permit, including expenses associated with:

  • providing required financial information
  • providing a National Audit Tool report by a certified auditor or evidence of JAZ-ANZ certification against AS/NZ 4801:2001 or the National Audit Tool, and
  • seeking approval of an Injury Management Program.

Once a permit is granted, there are ongoing expenses.

  • Requirement to make annual contributions to the WorkCover  Tasmania Board and the Nominal Insurer Fund.



 

Duration ranges from one year to 3 years, depending on the self-insurer’s ability to satisfy the criteria.
NTReturn to Work Act 1986  s120 — Employer to write to Authority for approval to self-insure

No cost. The only fee for employers is for an actuarial assessment to be provided to NT WorkSafe’s actuary. Once approved, a self-insurer will be required to pay an amount determined by the Authority as a contribution towards:

  • administration costs of the Work Health Court
  • administration costs of the Supreme Court associated with proceedings under the Act
  • costs incurred by the Authority in providing a mediation service, and
  • costs incurred by the Territory in relation to the Authority’s (NT WorkSafe) performance of its functions under the Return to Work Act or other Act and in relation to promoting health and safety. —  s121A .

They are also subject to contribution to the Nominal Insurer based on notional market share if requested.

3 years
ACTSubmit application to WorkSafe ACT, who is responsible for assessing licence applications. The process is outlined in the  Workers Compensation (Self-Insurer Licence Application) Protocol 2022 .The insurer must comply with and pay the costs of compliance or financial audits –  s89 of the  Workers Compensation Regulation 2002 Continues in force until licence is surrendered or cancelled. s145Q 
C’wealth Comcare

Process for applying for eligibility:  By Ministerial declaration and provided that the Minister is satisfied that it would be desirable for the Safety, Rehabilitation and Compensation Act 1988 to apply to employees of a corporation that:

  • is, but  is about to cease to be, a Commonwealth authority, or
  • was previously a Commonwealth authority, or
  • is carrying on business in competition with a Commonwealth authority or with another corporation that was previously a Commonwealth authority.

The  Safety, Rehabilitation and Compensation Directions 2019 sets out further requirements for eligibility.

If the corporation is so declared by the Minister, the corporation is then eligible to apply to the SRCC Commission for a licence.

Commonwealth Authorities can also apply for a licence to self-insure. Commonwealth Authorities are not required to obtain a declaration from the Minister before applying to the Commission for a self-insurance licence. They must consult with the relevant portfolio Minister about their intention to apply for a licence.  Evidence of this consultation must be supplied with the application.

Process for applying to  become a self-insurer is in  s102   Safety, Rehabilitation and Compensation  Act 1988 :  Once a corporation is declared eligible by the Minister, it may apply to the Commission for a licence. To grant a licence, the Commission will consider whether:

  • it has sufficient resources to fulfil the responsibilities under the licence
  • it has the capacity to ensure claims will be managed in accordance with the Commission’s standards for claims management
  • it has the capacity to meet the Commission’s standards for the rehabilitation and work health and safety of its employees
  • granting the licence will not be contrary to the interests of the corporation’s employees whose affairs fall within the licence’s scope
  • because of the applicant’s past conduct it is unlikely that the applicant would meet the standards set by the  Commission for claims management, rehabilitation and prevention.

One off application fee based on size, complexity, costs of assessment process etc.

Annual licence fee payable in accordance with the  Cost Recovery Implementation Statement 2023-24 . The fee represents the costs incurred by the Commission and Comcare in carrying out their respective functions under the SRC Act and WHS Act (for licensees with Commonwealth WHS coverage)

Up to 8 years
New Zealand

Employer completes an application form providing supporting financial, business and health and safety information. Employer notifies all  staff in writing about their intention to join and consults with employee representatives about intention to join.

The employer coordinates staff and documentation for the health and safety audit (completed by an ACC approved independent auditor) using the approved audit tool.

The employer submits the application to ACC (the Manager). ACC undertakes the approval process. Once approval process has been undertaken ACC makes a decision and the applicant will be notified.

No application fee

  • Pay  a portion of the pre-entry audit costs.
  • Cost of the independent audit of health and safety.
  • Employers must also pay to ACC a discounted annual levy and the cost of the liability cap they have chosen. The amount is based on legislated formula and depends on the product options chosen. 



 

Approval may be for one to 3 years.

Annual reviews are undertaken to ensure entry (including prudential) requirements are being maintained.