Western Australian Numbered Acts

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WORKERS COMPENSATION AND INJURY MANAGEMENT ACT 2023 (NO. 21 OF 2023) - SECT 261

261 .         Required contributions by insurers and self-insurers to DI Fund

        (1)         For each financial year WorkCover WA must determine the amount (if any) that is required to be paid into the DI Fund (the total annual DI Fund contribution ) to ensure the sustainable functioning of the DI Fund, having regard to —

            (a)         the amount standing to the credit of the DI Fund; and

            (b)         the amount required to provide for existing and expected liabilities of the DI Fund, determined having regard to independent actuarial advice obtained by WorkCover WA.

        (2)         WorkCover WA must make the following calculations and determinations for the purpose of calculating the contributions to be required from licensed insurers and self-insurers to yield the total annual DI Fund contribution for a financial year (the current year ) —

            (a)         add the total premium income of all licensed insurers to the total notional premium income of all self-insurers for the financial year preceding the current year to arrive at an amount that is the total premium income for that preceding financial year;

            (b)         determine the percentage (the contribution percentage ) of the total premium income for the preceding financial year that yields the total annual DI Fund contribution for the current year;

            (c)         calculate a contribution (the required DI Fund contribution ) for each licensed insurer and each self-insurer for the current year by applying the contribution percentage to the premium income of the licensed insurer, or the notional premium income of the self-insurer, for the preceding financial year.

        (3)         WorkCover WA may set a minimum required DI Fund contribution for a financial year (which may be a different minimum for licensed insurers and self-insurers).

        (4)         If a minimum required DI Fund contribution is set for a financial year, the determination of the contribution percentage for that financial year must make due allowance for the effect that the minimum required DI Fund contribution will have on the percentage of total premium income required to yield the total annual DI Fund contribution.

        (5)         Each licensed insurer and self-insurer must pay to WorkCover WA for payment into the DI Fund —

            (a)         the required DI Fund contribution for the current year calculated under this section; or

            (b)         if a minimum required DI Fund contribution has been set for the current year and is greater than the calculated contribution referred to in paragraph (a) — the minimum required DI Fund contribution for the current year.

        (6)         In the case of a group of related self-insurers comprised of the holder of a self-insurer licence and each of the related entities of the holder to which the licence extends —

            (a)         the required DI Fund contribution for the self-insurers of the group must be calculated as a single contribution for the group; and

            (b)         a minimum required DI Fund contribution set by WorkCover WA applies to the contribution calculated for the group; and

            (c)         each self-insurer of the group is jointly and severally liable for payment of the required DI Fund contribution.

        (7)         When an insurer becomes a licensed insurer during the current year (a new licensed insurer ) or an employer becomes a self-insurer during the current year (a new self-insurer ) —

            (a)         no contribution to the DI Fund for the current year is required from the new licensed insurer or new self-insurer; and

            (b)         the calculation under this section of the required DI Fund contribution must not include any amount in respect of a new licensed insurer or new self-insurer.



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