New South Wales Consolidated Regulations

INSURANCE PREMIUMS ORDER (JULY-DECEMBER) 2005 - SCHEDULE 10

SCHEDULE 10 – Premium discount scheme

1 General

The premium discount amount (“Y”) in respect of a period of insurance is to be calculated in accordance with the following provisions:

(a) if the employer is a category A employer for the purposes of the policy, in accordance with the following formula:

If the basic tariff premium does not exceed $112,000 (or, if the period of insurance is to be less than 12 months, where the basic tariff premium would not exceed $112,000 were that period of insurance to be 12 months), and if the experience adjusted premium exceeds twice the value of the basic tariff premium [T], then the value of 2T replaces the experience premium in the above formula. That is, where the [2T] limit applies, then:

(b) if the employer is a category B employer for the purposes of the policy, in accordance with the following formula:

(c) the maximum value of Y (maximum premium discount amount) is:

(i) $75,000 with respect to the employer’s first year of participation, and

(ii) $50,000 with respect to the employer’s second year of participation, and

(iii) $25,000 with respect to the employer’s third year of participation,

"T" is the basic tariff premium for the employer, calculated with respect to the period of insurance in accordance with Schedule 3 to this Order.
"S" is the experience adjustment factor for the employer determined with respect to the period of insurance in accordance with Schedule 4 to this Order.
"E" is the experience premium, if any, for the employer determined with respect to the period of insurance in accordance with Schedule 5 to this Order.
"X" is the excess surcharge factor for the employer determined with respect to the period of insurance in accordance with Schedule 6 to this Order.
"Q" is the premiums adjustment contribution, if any, for the employer.
"Y" is the amount of the premium discount on the insurance premium payable by the employer.
"PDS level" is the PDS level specified for a year of participation of the employer under Division 4 of Part 21 of the Workers Compensation Regulation 2003 .

2 Entitlement to a premium discount

An employer’s entitlement to a premium discount amount is to be determined in accordance with Division 4 of Part 21 of the Workers Compensation Regulation 2003 .

3 Definitions

In this Schedule:
"first year of participation", "second year of participation", "third year of participation" and "year of participation", in relation to an employer, have the same meanings as in Division 4 of Part 21 of the Workers Compensation Regulation 2003 .