WorkCover Premium Evasion Package

Date: 25 September 2001

NSW Special Minister of State and Minister for Industrial Relations, John Della Bosca, has announced a crackdown on employers who evade their WorkCover premiums.

The package of measures includes three new taskforces of inspectors and specialist investigators, with the power to levy fines of up to $55,000 on employers who are cheating the system.

"The failure of some employers to pay the correct workers' compensation premium contributes to the WorkCover Scheme's deficit and results in higher premiums for the majority of employers who are properly insured," said Mr Della Bosca.

As part of the Premium Evasion Package, WorkCover will;

· More than double the number of employer wage audits to 12,000 per year.

· Create three new compliance taskforces, manned by 30 inspectors, specialist investigators and data analysts.

· Target industries with a track record for non-insurance, such as construction, metal manufacturing, clothing manufacturing and contract cleaning; and

· Analyse responses to the recent Government green paper on legislative reforms to improve workers' compensation insurance compliance.

"WorkCover's investment in advanced data-mining software is paying dividends, putting the agency in an unprecedented position to detect the shonky employers. In 2000/2001, WorkCover wage audits generated $14.8 million in additional premiums, which is double the amount from 1999/2000.

"The new compliance taskforces will be guided by specialists in the recently formed Compliance Improvement Branch. A targeted audit of over 1,000 construction industry employers in 2000/2001 netted an additional $2.5 million in premiums and returned over $18 for every dollar in audit costs.

"In December last year and again in July, the New South Wales Government passed legislation which is closing the net on those employers who try to evade their responsibilities. We have introduced two year jail terms for premium fraud, doubled many of the financial penalties and given WorkCover the largest number of inspectors of any agency in the country," said Mr Della Bosca.

"The are substantial penalties for employers who knowingly give misleading information to their workers' compensation insurance company and new provisions which allow us to recover double the amount of premium avoided from individual directors of uninsured or underinsured corporations.

"WorkCover's substantial and successful efforts to ensure employers pay the correct premiums will be boosted by this package of measures. Greater compliance will help cover the costs of the WorkCover scheme and will ensure all businesses compete on an equal basis."

For further information

Contact:	Andrew Plumley
Union:	Labor Council of NSW
Phone:	9228 4777
Contact Mobile:	0438 455 562
WWW:	http://www.dir.nsw.gov.au

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