Note: For information on current Workers Compensation arrangements, refer to the relevant Advice and Instructions.

Also, refer to the WorkCover NSW website for information regarding Workers Compensation in NSW.

Advice and Instructions

Workers Compensation Arrangements - Revised

Issued: 17 December 2003

Note: Refer to the relevant Advice and Instructions for information on current NSW incentives for employers, apprentices and trainees.

From 1 January 2004 employers will be required to meet workers compensation premium costs for new entrant trainees employed on or after 1 January 2004. Legislation to give effect to this decision was passed by the NSW Parliament on 4 December 2003.

To minimise the impact of this change, the Government will continue to meet the cost of workers compensation premiums of new entrant trainees, who commenced their traineeship prior to 1 January 2004, for a period up to 31 December 2004 or the completion of the traineeship, whichever occurs first.

For Employers:
For any new entrant trainees employed on or after 1 January 2004, the employer will need to include those trainees as workers on the employer’s workers compensation policy and declare their wages to the employer’s insurer as is currently the practice for all other employees. Claims for new entrant trainees employed under the new arrangement should be reported to your insurer as is required for all other employees.

For current new entrant trainees employed before 1 January 2004, the employer should include them and their wages on the employer’s workers compensation policy from the end of the traineeship or 1 January 2005, whichever occurs first. Claims for new entrant trainees subject to the former arrangement should continue to be reported to the Department of Education and Training or the GIO.

If these changes are likely to increase the employer’s total wages by more than 25 per cent, the employer should contact their workers compensation insurer to adjust their wages estimate to avoid penalties for under declaration of wages.

Employers should also ensure that any existing worker trainees (generally those employed for more than 3 months full-time or 12 months part-time prior to entering the traineeship) are included on their workers compensation policy. Employers may become subject to penalties for under declaration of wages if these trainees are not included in wages declared for their workers compensation policy.

For New Apprenticeships Centres:
NACs should be aware that from 1 January 2004 late applications for the establishment of new entrant traineeships will be subject to particular scrutiny to ensure the genuineness of the arrangement. An explanation and supporting documentation will be sought where an application is late lodged.

NACs and employers should not anticipate approval of the application where a workplace injury has occurred prior to approval of the application for the establishment of the new entrant traineeship

The Government continues to provide significant incentives to encourage traineeships including travel and accommodation subsidies and an exemption from payroll tax replacing the current rebate scheme from 1 January 2004.

Queries or comments may be submitted electronically to traineeworkerscompensation@det.nsw.edu.au or via the special workers compensation line on 02 9266 8610.

Approved by the Commissioner for Vocational Training