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What if I work in more than one WorkCover industry?

We’ve discussed before about how the industry that you operate in is one of the key drivers of your premium.

But what happens if you operate in more than one industry?

In Victoria’s WorkCover system, a workplace can only be allocated to one industry. Actually, a workplace is determined to have a predominant activity, which will then align to a single industry. The predominant activity is determined based on a ‘value added’ approach.

Here’s an example:
We have a factory that makes widgets. As well as making widgets, there is a loading dock, a cleaner’s closet and a canteen. These could all theoretically fall under different activities; Widget manufacturing, transport and logistics, building cleaning, and food services. But if it were not for the widget manufacturing, none of the other work would be done there. The predominant activity is widget manufacturing, and the industry of this workplace will be judged as such.

So, one workplace = one industry.

What if there are multiple workplaces?

Some employers have more than one workplace, and they can each be assigned to a different industry all based on the predominant activity as above.

From a premium point of view, when that happens, an employer’s industry rate is split between the multiple industries. The premium model uses a weighted industry rate (WIR).

There is a bit of maths involved in calculating the WIR, but it’s pretty straight forward. If you have two workplaces from two different industries, if the remuneration is split evenly between the two, the WIR will be evenly split between the two industry rates.

Here is an example

Workplace Industry Industry Rate Remuneration
Workplace A Widget Manufacturing 2% $500,000
Workplace B Doohickie Repairs 1% $500,000

Because the remuneration is evenly split, you take half the industry rate from Workplace A and half the industry rate from Workplace B, and add them together:
(2% x 0.5) + (1% x 0.5)
WIR = 1.5%

If you have more than two workplaces, or the remuneration split is different it’s adjusted accordingly.

And now when I read back that I said it was “pretty straight forward”, I realise I might have been a bit misleading.

If you’re confused, or want to talk to someone about this, get in touch.

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