(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.