New South Wales Consolidated Regulations

INSURANCE PREMIUMS ORDER (JANUARY-JUNE) 2007 - SCHEDULE 9

SCHEDULE 9 – Input tax credit adjustment

1 General

The input tax credit adjustment (“I”) in respect of a period of insurance is to be calculated as follows:

(a) if the employer is a medium or large employer, in accordance with the following formula:

(b) if the basic tariff premium less the apprentice incentive amount is less than $50,000 (or, if the period of insurance is to be less than 12 months, where the basic tariff premium less the apprentice incentive amount would be less than $50,000 were that period of insurance to be 12 months), and if the experience adjusted premium exceeds one and a half times the value of the basic tariff premium [T], the value of replaces the experience premium in the above formula. That is, where the limit applies, then:

(c) if the basic tariff premium less the apprentice incentive amount is or exceeds $50,000 but is less than $150,000 (or, if the period of insurance is to be less than 12 months, where the basic tariff premium less the apprentice incentive amount would be or would exceed $50,000 but would be less than $150,000 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], the value of replaces the experience premium in the above formula. That is, where the limit applies, then:

(d) if the basic tariff premium less the apprentice incentive amount is or exceeds $150,000 but is less than $300,000 (or, if the period of insurance is to be less than 12 months, where the basic tariff premium less the apprentice incentive amount would be or would exceed $150,000 but would be less than $300,000 were that period of insurance to be 12 months), and if the experience adjusted premium exceeds two and a half times the value of the basic tariff premium [T], the value of replaces the experience premium in the above formula. That is, where the limit applies, then:

(e) if the employer is a small employer, in accordance with the following formula:

"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.
"Y" is the premium discount amount, if any, for the employer determined with respect to the period of insurance in accordance with Schedule 10 to this Order.
"Q" is the premiums adjustment contribution, if any, for the employer.
"A" is the apprentice incentive amount, if any, for the employer determined with respect to the period of insurance in accordance with Schedule 12 to this Order.
"B%" is the percentage rate specified in Column 2 of the Table to this clause that corresponds to the range of input tax credit entitlement specified in Column 1 that contains the input tax credit entitlement for the employer.

Table

2 Determination of input tax credit entitlement for the purposes of the calculation of premium

(1) In this Schedule, a reference to the input tax credit entitlement for an employer, in relation to a period of insurance, is a reference to the employer’s input tax credit entitlement notified in respect of that period in accordance with clause 134 of the Workers Compensation Regulation 2003 by the employer to the insurer.

(2) If at any time the employer has failed to notify the insurer of the employer’s input tax credit entitlement in respect of that period in accordance with clause 134 of the Workers Compensation Regulation 2003 , the employer’s input tax credit entitlement in respect of that period is for the purposes of this Schedule taken to be 100%.

3 Input tax credit adjustment for members of groups

Despite clause 1, if the employer is a member of a group:

(a) clause 1 (b)-(e) do not apply, and

(b) where the sum of the basic tariff premiums less the sum of apprentice incentive amounts for all the members of that group:

(i) is less than $50,000 (or, if the period of insurance is to be less than 12 months, where the sum of the basic tariff premiums less the sum of apprentice incentive amounts would be less than $50,000 were that period of insurance to be 12 months), and if the experience adjusted premium exceeds one and a half times the value of the basic tariff premium for the employer’s policy [T], the value of replaces the experience premium in the formula in clause 1 (a). That is, where the limit applies, then:

(ii) is or exceeds $50,000 but is less than $150,000 (or, if the period of insurance is to be less than 12 months, where the sum of the basic tariff premiums less the sum of apprentice incentive amounts would be or would exceed $50,000 but would be less than $150,000 were that period of insurance to be 12 months), and if the experience adjusted premium exceeds twice the value of the basic tariff premium for the employer’s policy [T], the value of replaces the experience premium in the formula in clause 1 (a). That is, where the limit applies, then:

(iii) is or exceeds $150,000 but is less than $300,000 (or, if the period of insurance is to be less than 12 months, where the sum of the basic tariff premiums less the sum of apprentice incentive amounts would be or would exceed $150,000 but would be less than $300,000 were that period of insurance to be 12 months), and if the experience adjusted premium exceeds two and a half times the value of the basic tariff premium for the employer’s policy [T], the value of replaces the experience premium in the formula in clause 1 (a). That is, where the limit applies, then: