Under the South Australian Workers Rehabilitation and Compensation Act 1986 (the Act), all employers must register with WorkCover within 14 days of employing workers, unless you are exempted. If you pay your workers less than $10,900* a year, you are exempted and are therefore not required to register and pay a levy unless a claim is lodged by one of your workers. However, if you cross this $10,900 threshold, you must register with WorkCover within 14 days.

If you purchase a business as an employer – you inherit the claims and remuneration history for the registered location of that business. However, you must register as an employer with WorkCover to let us know about your new business.

If you sell a business – the new owner will inherit the claims and remuneration history of that business’ location but the new owners will need to register their own business details with WorkCover.

* This amount is indexed and is adjusted anually

Employer responsibilities

As a registered employer you are responsible for:

• paying the correct levy to WorkCover by the due date
• advising WorkCover of revised estimates of remuneration as required by the Act
• notifying WorkCover within 14 days of any amendment to registration details (eg, change of address, contact person, locations, trading name, main activity)
• providing an estimate of remuneration as required by the Act
• providing a statement of actual remuneration as required by the Act
• complying with legislation including the requirement to appoint a rehabilitation and return to work coordinator in the workplace if you have more than 30 workers unless you are exempt under the regulations
• reporting injuries at your workplace when they occur to Employers Mutual
• forwarding all claims for compensation to Employers Mutual or WorkCover in writing, using a WorkCover Claim form, by submitting an online claim, or by phoning in with the required claim information, within five days (or within two business days if the employer wishes to take advantage of the incentive for early reporting of claims)
• paying the first two weeks income maintenance to an injured worker (ie, a maximum of two weeks per calendar year per worker) unless the employer has taken advantage of the incentive for early reporting of injuries taking steps to prevent injuries from occurring wherever possible by providing a healthy and safe work environment.

An employer is exempted from the obligation to register under the Workers Rehabilitation and Compensation (Claims and Registration) Regulations 1999.

There are two categories of exemption:

1. Employer not engaged in a trade or business
   
   If,
   • the employer employs one or more persons (the workers) under a contract of service or contracts of service; and
   • the workers are not employed for the purposes of a trade or business carried on by the employer; and
   • the total remuneration payable by the employer to the workers in a calendar year does not exceed $10,200* indexed
   • the employer is not, in respect of those workers, required to be registered under section 59 of the Act (and the remuneration paid to those workers need not be included in any return provided to WorkCover under section 69 of the Act); and are exempt from the operation of section 46(3) of the Act (the employer excess of paying the first two weeks income maintenance of an injured worker)
     
     * For 2010 calendar year the indexed amount is $10,900
2. Employer engaged in a trade or business
   
   If the total remuneration payable in a calendar year by an employer to workers employed by the employer for the purposes of a trade or business carried on by the employer does not exceed $10,200* indexed, the employer
   
   
   • is not required to be registered under section 59 of the Act; and
   • not required to include the remuneration paid to their workers in any return provided to WorkCover under section 69 of the Act;
   • exempt from the operation of section 46(3) of the Act (the employer excess of paying the first two weeks income maintenance of an injured worker)

* For 2010 calendar year the indexed amount is $10,900

However, if a worker suffers a disability arising from that employment that is determined under the Act to be a compensable disability, the exemption from the requirement to register does not apply in relation to the employer from the day of occurrence of the disability until the end of the financial year in which the disability occurred.

This means if a claim has been determined to be a compensable disability and the employer is engaged in a trade of business, the exemption from the obligation to register does not apply in respect of the period from the occurrence of the disability to the end date of the financial year in which the disability occurred. In this case, an employer must complete and provide to WorkCover an application to register as an employer and pay a levy, being the minimum levy for a particular financial year – for 2009-10 the minimum levy is $100 plus GST plus OHSW fee*

* not subject to GST.

A publication on the Small employer registration exemption is available for download here

Under the South Australian Workers Rehabilitation and Compensation Act 1986 (the Act), all employers must register by downloading a registration form and sending it to WorkCover. Or you can ring our Service Centre 13 18 55 and ask for a form to be sent to you. If you have any queries about registering please contact our Service Centre on 13 18 55.

When completing your registration form, you are required to provide specific information about your business operations to enable WorkCover to assess your potential injury risk, industry class (ie, the industry that your workplace is classified in) and levy rate.

We will also ask you how many workers you employ. If that number is 30 or more (regardless of how many hours they work), you must appoint a rehabilitation and return to work coordinator within six months of being registered with WorkCover. They do not have to be a full-time employee who is dedicated solely to the coordinator’s role.

We will contact you if we need further information from you to complete your registration.

The Workers Rehabilitation and Compensation Act 1986 (the Act) provides South Australian employers and workers with a no fault scheme that is aimed at rehabilitating and restoring an injured or ill worker to their work, family and community.

A brochure titled Guide to definition of worker has been produced to help employers and/or workers who may be uncertain about the status of a person as a worker under the Act.

A worker includes a person by whom work is done under a contract of service (whether or not as an employee) and contract of service has a broader meaning than the common law contract of service. For example, if certain conditions are met, the Act deems a person, who would otherwise hold the status of independent contractor, to be performing work under a contract of service. Contract of service is extended by prescribed classes of work.

If you are unsure if you are required to register with WorkCover as an employer under the Act, contact us or phone our Service Centre on 13 18 55 for assistance.

Industry classification

WorkCover has adopted an industry-based classification and rating system called the South Australian WorkCover Industrial Classification (SAWIC).

When you register with WorkCover you will receive a confirmation letter which states which of the industry classification classes applied to your business.

SAWIC

SAWIC classes reflect the industries that workers are engaged in, within employer locations.

A change to a worker's activities may affect the classification and therefore the levy rate for your business. If the classification applied to you does not reflect your predominant activity, you can contact us for a reassessment.

The classification system divides all industries into 12 broad divisions. The broad divisions are:

• agriculture, forestry and fishing
• mining
• manufacturing
• electricity, gas and water
• construction
• wholesale and retail trade
• transport and storage
• communication
• finance, property and business services
• public administration and defence
• community services
• recreational, personal and other service.

It also classifies various industries within divisions by SAWIC code, as listed in the industry levy rate guide.

2010-11 Industry levy rates guide [490KB]

If your activity is employment services you should read the employment services guidelines developed specifically for this class of work.

If you are unsure of what industry class is applied to your business view the Employer FAQs on this subject, contact us, or phone the Service Centre on 13 18 55 for assistance.

Under workers compensation arrangements in South Australia, employers are classified to a single SAWIC class of industry at each workplace. The classification assigned is the one that most accurately describes the entire activity of all workers at that location.

The corresponding levy rate assigned to that class of industry represents the average experience of all activities of employers included in that class of industry.

In recognition of the unique circumstances of employers engaged in employment services, such as group apprenticeship schemes and group training companies, activities associated with this group were disaggregated from 1 January 2001.

These activities receive treatment as three separate classifications with corresponding levy rates.

Classification levy rate (exclusive of GST)

Initially from 1 January 2001

• SAWIC 8491 01 Employment Services Category 1 6.00%
• SAWIC 8491 02 Employment Services Category 2 2.50%
• SAWIC 8491 03 Employment Services Category 3 0.90%

Important note: The classifications and levy rates have since been changed. For more information view the Labour hire industry classification.

The following documents have been prepared to deal with the specific circumstances of the employment services area.

Instructional guidelines

These guidelines have been developed to assist you in circumstances where the supply of workers to a client (prospective client) is not registered as an employer. The instructional guidelines should be applied as a guide for the purposes of categorising employment services activity in calculation of the levy payable to WorkCoverSA.

Instructional guidelines [33KB]

Helpful hints

Use this document to assist with your levy calculation. It details a simple process for determining the appropriate classification and levy rate.

Helpful hints in calculation of levy payable - 'employment services' [28KB]

Instructional guidelines: Cross-hire arrangement

WorkCover's understanding of the relationships formed between the parties to a normal cross-hire arrangement is explained in the document below.

Instructional guidelines: Cross-hire arrangement [13KB]

For further information on employment services view the FAQs, contact us or phone the Service Centre on 13 18 55.

Following a review of the industrial classification of employment services (also known as labour hire) the WorkCover Board has implemented new classification/levy rate arrangements.

Classification levy rate (exclusive of GST)

Effective from 1 July 2009;

• SAWIC 8491 01 Employment Services Category 1 - 7.50%
• SAWIC 8491 02 Employment Services Category 2 - 4.10%
• SAWIC 8491 03 Employment Services Category 3 - 1.00%

Refer to the Classification Guide for more details of each of these classes. The guide includes information effective from 1 July 2003.

Classification guide (effective 1 July 2003) [78KB]
Classification: Levy rates historical [38KB]

The effect of these changes on existing classification/levy rates applied to these businesses will for example see the treatment of three separate locations in lieu of one location:

The classification of SAWIC 8491 01, SAWIC 8491 02, SAWIC 8491 03 and corresponding levy rate applied to Location 1, Location 2, Location 3 respectively.

All workers engaged in 'ancillary unit' or support activity included under the location predominantly served.

For further information on labour hire view the FAQs or phone the Service Centre on 13 18 55

Under the WorkCover scheme, the term contract of service has a broad application, so that people who may otherwise be considered contractors are legally deemed to be workers under the Workers Rehabilitation and Compensation Act 1986 (the Act). If you hire workers in these prescribed classes of work you are legally considered to be an employer, and must therefore, register with WorkCover.

Prescribed classes of work

The guides below will help you to determine if you employ workers under the terms of the WorkCover scheme.

Guide to deemed workers - building work (November 2009) [93KB]

Guide to definition of worker in driving or riding for fee or reward a vehicle other than a commercial motor vehicle [102KB]

A guide to fishing crews [353KB]

A guide to outworkers [354KB]

A guide to taxi drivers [360KB]

A guide to miscellaneous classes [356KB]

A guide to cleaning work [66KB]

Working directors

A director of a company undertaking services to that company, other than the standard duties of a director, is usually considered a worker. This is because a contract of service exists between the company and the director. You are required to register and account for the working director in your levy payment.

Legal definitions of the terms 'worker' and 'contractor' can be complex, so if you have any queries about your business contact us or phone our Service Centre on 13 18 55.

A Certificate of registration will be sent once the registration process is completed. Your Certificate of registration includes information provided by you such as trading name and address of your business. It also includes information such as your WorkCover employer number, location number, industry class and code, rates and fees that apply, and your total rate. A tax invoice will also be sent to advise the levy due and payment due date(s).

You'll also receive the booklets Welcome to WorkCoverSA (which covers your responsibilities as an employer) and Levy information (which contains everything you need to know about the levy process).

Example

Josie is the sole proprietor of a small hairdressing salon trading as Classic Hair. She registered with WorkCover when she started employing a worker, being a part-time hairdresser. Josie as a self-employed person is not a worker under the Act; however, any part-time staff she may employ are workers under the Act.

After submitting the Employer registration form Josie received a registration pack in the mail, which included her Certificate of registration with details of her total levy rate and information to assist compliance of her obligations under the Act. A tax invoice was also issued advising Josie when and how to pay the levy due

If you are unsure if you should register as an employer view the FAQs, contact us, or phone the Service Centre on 13 18 55 for assistance.

Your registration with WorkCover is ongoing. If there are any changes to your employer details, including your location records (eg, adding a new location, moving to new premises or changing the nature of the work undertaken), you must let us know within 14 days. If you have access to our secure site you can amend certain registration details (such as locations) online. Alternatively you can phone our Service Centre or download an Employer registration amendment form or an Additional location form and post, fax or submit it in person to WorkCover.

If you have stopped employing workers and wish to cancel your registration, you can do this online if you have access to our secure site. Alternatively, you can call our Service Centre and let us know within 14 days of ceasing to employ.