The ACT Workers’ Compensation statutory Default Insurance Fund (DI Fund) levy is changing. The first change in over three years, the government levy will now be increasing from 1.40% to 2.90%.
Currently, individuals and businesses with an active ACT Workers’ Compensation policy contribute a levy amount of 1.40% to their nominated insurer. However, effective 30 June 2017, the levy will rise to 2.90% to continue supporting the cost of uninsured employer’s claims against the fund and will now also support imminently fatal asbestos related diseases.
What is the Default Insurance Fund?
The fund was established on 1 July 2006 under section 166 of the Workers’ Compensation Act 1951 and was created to ensure all workers who are injured at work in ACT have access to benefits and entitlements in the ACT – even if they have no access to Workers’ Compensation insurance.
- The Default Insurance fund ultimately serves as a safety net for privately employed workers who:
suffer personal injury arising out of, or in the course of, their employment, - suffer personal injury on an employment-related journey,
- suffer personal injury on a journey between the worker’s home and workplace;
- contract a disease for which their employment was a significant contributing factor; or
- suffer an aggravation, acceleration or recurrence of a disease for which their employment was a significant contributing factor; and
- have NO OTHER access to workers compensation benefits.
The ultimate role of the fund is to support and protect people injured at work – even if their employer failed to adequately cover their workforce or an Insurer had collapsed.
If you have any questions about how this change will impact the cost of your insurance, please contact your broker or the office on 6140 8100.
Did you know…
Registered companies in the ACT are required by law to hold an active workers’ Compensation policy – even for a company that does not employ anyone and even if the directors do not draw any wages from the business. However, remuneration in the form of dividends can be declared and covered under ACT Workers’ Compensation.
If you are seeking a new Workers’ Compensation policy, or have queries in relation to your existing policies, contact our office to access over 35 years’ experience in the industry. We look forward to being able to assist you and your insurance needs.
