Predominant activity and Industry Classification your duty of disclosure
Note: This replaces the Public Ruling ‘Date of effect for changes of WorkCover Industry
Classification’ effective 1 July 2010
Background
Your industry classification is an important factor in the calculation of your premium.
The purpose of these guidelines is to explain your duty of disclosure to WorkSafe in relation to
your predominant activity and industry classification. This will help to ensure that your industry
classification remains correct and you do not make overpayments or underpayments of your
premium that may need correcting later. You are also expected to comply with the notification
requirements in your WorkSafe Insurance Policy.
Guidelines
What are industry classifications?
Each workplace in Victoria is assigned an industry classification from the Premiums Order based
on the predominant activity undertaken at the workplace. Each industry classification is assigned
an industry rate every year which is used in the calculation of your premium. The industry rate for
each industry classification reflects the claims experience of that industry.
When does WorkSafe determine my industry classification?
WorkSafe will determine your industry classification when you first apply for a WorkSafe
Insurance Policy and will usually make further determinations when it is notified that:
 You commence a new workplace
 Your business becomes a sole trader, partnership or company or someone joins or leaves your
 partnership
 Your predominant activity or business address changes
 Your business becomes or ceases to be part of a group
WorkSafe may also determine your industry classification if:
(1)
(2)
WorkSafe initiates a review of your premium, or if
you request your WorkSafe Agent, or WorkSafe, to undertake a review of your premium.
How does WorkSafe determine my industry classification?
WorkSafe will first determine the predominant activity undertaken at your workplace.
WorkSafe will then assign the appropriate industry classification in the Premiums Order which
corresponds, or most closely corresponds, to that predominant activity.
In making its determination, WorkSafe will take into account matters including:
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The information you supply in documents such as insurance forms, financial statements and
correspondence with WorkSafe
Your responses to WorkSafe’s questions
The findings of its own enquiries
In accordance with the Premiums Orders, WorkSafe uses a number of different measures to determine
your predominant activity and your industry classification. These include, but are not limited to:
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The goods and services you provide
The activities carried out at your workplace
What you consider to be the predominant activity and why
Assessment of the activity that contributes the most value to your business
The raw materials, equipment and processes that you use
A breakdown of your sales, cost of goods produced and your cost of labour
Whether you own the goods you provide
Whether you provide the goods or services internally
Whether you provide the goods or services to another business which is associated to your
business
How do I find out my current industry classification?
To find out your current industry classification, you may log in to WorkSafe’s Online Employer Services on
the WorkSafe website. Your classification will be shown when you update your remuneration.
Alternatively you may contact your WorkSafe Agent for this information.
What is my duty of disclosure to WorkSafe in relation to my predominant activity and industry
classification?
At all times (e.g. when you are an applicant for a WorkSafe Insurance Policy or renewing, extending or
varying that insurance policy or you are subject to a review of premium) it is your duty to ensure that:
(1) you have advised WorkSafe of every matter that you know, or a reasonable person in the
circumstances could be expected to know, relevant to the correct determination of your
predominant activity and industry classification. This includes answering all questions on the
insurance form.
(2) you do not make misrepresentations to WorkSafe in relation to those matters.
If you provide obviously incomplete or irrelevant answers to questions included on an insurance form and,
or, continue to withhold relevant information after WorkSafe has taken reasonable steps to clarify any
matters with you, you may be taken to have failed to meet your duty of disclosure.
What if I’ve overpaid my premium because my industry classification has been incorrect?
If, on completion of a review of your premium, WorkSafe determines that your premium liability would
decrease if WorkSafe applied the correct classification from the Effective Date, then the correct industry
classification will apply from that date. Subject to any other premium liabilities you may have, WorkSafe
may issue you with adjusted premium notices to refund the overpaid premium for the Current Policy
Period plus up to a maximum of four preceding policy periods.
What if I’ve underpaid my premium because my industry classification has been incorrect?
If, on completion of a review of your premium, WorkSafe determines that your premium liability would
increase if WorkSafe applied the correct classification from the Effective Date, then WorkSafe will apply
either one of the following rules:
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Rule 1:
If WorkSafe considers that you met your duty of disclosure prior to the commencement of its review,
then your correct industry classification will apply from the commencement of the Current Policy Period.
WorkSafe will issue you with an adjusted premium notice to collect the underpaid premium for the Current
Policy Period.
Rule 2:
If WorkSafe considers that you did not meet your duty of disclosure prior to the commencement of its
review, then your correct industry classification will apply from the Effective Date. WorkSafe will issue you
with adjusted premium notices to collect the underpaid premium for the Current Policy Period plus up to a
maximum of four preceding policy periods.
Note: The above rules do not apply in the instance of fraud. If WorkSafe determines that your industry
classification has been incorrect due to fraud on your part, your correct industry classification will apply
from the date WorkSafe considers that you commenced to carry on your most recent predominant activity.
You will be liable for any additional premium and penalties arising in respect of all the policy periods
adjusted.
Definitions
For the purposes of these guidelines, the following definitions apply.
Commencement and completion of a review of premium
A review of premium commences when WorkSafe has provided you with formal acknowledgement that a
review of your premium is to be conducted, or on the first use by WorkSafe of its coercive powers
available under sections 239, 240, 240A, and 248B of the Accident Compensation Act 1985.
A member of a group will be deemed to have been informed of a review of premium, if any member of
that group has been duly informed.
A review of premium is completed when WorkSafe has provided you with formal acknowledgement that
WorkSafe has completed the review of your premium.
Current Policy Period
If WorkSafe initiates a review of your premium, the current policy period means the policy period in which
WorkSafe notifies you of its decision.
If you initiate a review of your premium, the current policy period means the policy period in which you
request WorkSafe to perform the review.
Effective Date
“Effective Date” is the latter of:
 the date that WorkSafe considers that you commenced to carry on your most recent predominant
activity; or
 four years prior to the commencement of the Current Policy Period (or more than four years if prior
evidence exists).
Employer
“Employer” has the same meaning as in section 3(1) of the Act.
Group or a Member of a Group
This refers to the meaning of “a group” within section 66 of the Act.
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Insurance Form
“Insurance Form” means:
 a document, or form, containing questions to which you are asked to give answers (whether in the
document or not), where the answers are intended (whether by you or by WorkSafe) to be used in
connection with your WorkSafe Insurance Policy
Misrepresentations
“Misrepresentation” means omitting or making of a false statement of fact which is a significant
contributing factor in causing WorkSafe to determine a predominant activity or industry classification,
which it would otherwise not have done.
You are also required to adhere to ‘Notification Requirements’ (defined below) regarding any changes to
your activities or workplace, which may impact determination of your predominant activity or industry
classification.
However, you will not be taken to have made a misrepresentation if WorkSafe is satisfied that:
 the statement was based on a belief held by you and
 a reasonable person would have held that belief; or
 you did not know, or a reasonable person could not be expected to have known, that the
statement would have been relevant to WorkSafe’s determination of your predominant activity and
industry classification.
Note: It is an offence under section 249 of the Accident Compensation Act 1985 for a person to provide
false or misleading information under that Act or the Act.
My
“My” indicates something belonging to or a duty of an employer that is insured under a WorkSafe
Insurance Policy or is an applicant in relation to such a policy. It also includes an authorised
representative of an employer.
Notification requirements in your WorkSafe Insurance Policy document
“Notification requirements” means the requirements in clause 24 of your WorkSafe Insurance Policy which
state:
24. Notification of changes to activities or workplaces
You must notify us or the Agent for this Policy within 14 days if:
(a) you occupy a workplace which is not listed on your Premium Notice, or
(b) you change the activities carried on at any of your workplaces.
Policy Period
“Policy period” means the period of 12 months ending at 4 p.m. on 30 June in any year.
Predominant Activity
“Predominant activity” has the same meaning as in the Premiums Orders.
Premium
“Premium” means the premium you are liable to pay under the applicable Premiums Order.
Premiums Order
“Premiums Order” means an Order made under section 15 of the Act.
Reasonable Person in the circumstances
“Reasonable Person in the circumstances” means a hypothetical person who acts honestly and is of
ordinary prudence, intelligence and skill under the circumstances.
Note that in matters involving a “Premium Adviser”, the "Reasonable Person in the circumstances" test
becomes elevated to the test of a reasonable premium adviser in the circumstances.
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“Premium Adviser” means a person who provides professional advice to an employer in respect of an
employer's liability to pay premium for a WorkSafe Insurance Policy, such as a WorkCover consultant, a
legal practitioner or accountant.
The Act
“The Act” means the Accident Compensation (WorkCover Insurance) Act 1993.
Workplace
“Workplace” has the same meaning as in the Premiums Orders.
WorkSafe
“WorkSafe” means the Victorian WorkCover Authority and any of its Authorised Agents.
WorkSafe Insurance Policy
“WorkSafe Insurance Policy” has the same meaning as in section 3(1) of the Act and includes a policy
deemed to be in force by section 7(3A) of the Act.
You
“You” means an employer that is insured under a WorkSafe Insurance Policy or is an applicant in relation
to such a policy. It also includes an authorised representative of that employer.
Your
“Your” indicates something belonging to, or a duty of, an employer that is insured under a WorkSafe
Insurance Policy or is an applicant for such a policy. It also indicates an authorised representative of an
employer.
Disclaimer
Unless otherwise specified within these guidelines, this guideline is WorkSafe’s interpretation of the law
as it has operated to date and continues to operate. Guidelines do not have the force of law. Each
decision is made on the merits of each individual case having regard to any relevant guidelines. It is your
responsibility to ensure that you are using the current version of a guideline.
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