Victorian Consolidated Legislation

Accident Compensation (WorkCover Insurance) Act 1993 - SECT 31B

Default penalty where failure to provide full and true disclosure

31B. Default penalty where failure to provide full and true disclosure



(1) If-

   (a)  the Authority issues a notice of adjustment under section 26(4), 28(2)
        or 28B(2); and

   (b)  the notice of adjustment states an amount of premium that is different
        from any premium that was previously calculated for the employer for
        the policy period to which the notice of adjustment relates; and





   (c)  the Authority is satisfied that the premium was miscalculated because
        the employer or a person acting on behalf of the employer failed to
        provide full and true disclosure to the Authority in respect of
        matters relevant to the calculation of the premium-

the employer is upon being served with a notice of adjustment under this
section, liable to pay a default penalty of an amount equal to the difference
between the premium stated in the notice of adjustment and the premium that
was previously calculated for the employer.

(2) The amount of the default penalty imposed under subsection (1) is to be
increased by 20% if, after the Authority commenced the review under section
22, 27 or 28A, the employer or a person acting on behalf of the employer took
steps to prevent or hinder the Authority from properly calculating the premium
payable by the employer.

(3) A default penalty under this section is due and payable within 28 days of
the date of the notice.

(4) The Authority may remit the whole or any part of a default penalty imposed
under this section.

(5) In this section, premium includes amounts-

   (a)  paid or payable as premium;

   (b)  purportedly paid or payable as premium.

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