Comcare - Australian Government
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Employer premium performance

Employers are financially accountable for the cost of work-related injury and disease through the payment of an annual premium.

Comcare ensures soundly-based calculation of premiums and uses consulting actuaries to assess liabilities and determine annual amounts. The Australian National Audit Office (ANAO) also undertakes independent reviews of Comcare.

The premium rate that Comcare sets for each employer responds to that employer’s claim frequency and average claim cost, as well as to overall claim trends and the total amount that Comcare needs to collect from all employers to cover the cost of work-related illness and injury.

Therefore, the rate for each employer provides an indication of the employer’s effectiveness in preventing injury or illness and in helping its employees to return to work quickly and safely after a work-related injury or illness.

The publication of employers’ premium rates over a number of years contributes to increasing leadership accountability for prevention and injury management. A table showing premium rates for employers who had more than 100 employees in 2010–11 and in the previous three years can be accessed on the Comcare website.

Caution is needed in interpreting premium rates for employers for the following reasons:

  • The premium rate of each employer responds to overall claim trends and the total amount that Comcare needs to collect, as well as to each employer’s claim frequency and average claim cost. The response to the employer’s claim performance is faster for larger employers than it is for smaller employers.
  • Comparison between employers may not be valid because employees in different organisations may face inherently different risks. For example, the nature of duties and type of workplace may nature of duties and type of workplace may be different.
  • Year-to-year comparisons for some employers may also not be valid because of machinery-of-government changes where parts of organisations with higher or lower risk have moved between employers.