Annexure E – Review of primary activity guideline

Request for review: Primary activity of a business

Review of Primary Activity

Background

The NSW Workers Compensation Industry Classification (WIC) System is based on the Australian Bureau of Statistics (ABS) industry data published in 1993 under the title of Australian and New Zealand Standard Industry Classification (ANZSIC) 1993.

The ABS has arranged large amounts of data about business units into groupings which are analytically useful and readily understandable. In the case of ANZSIC, business units are identified by their predominant or primary activity and are then grouped on the basis of carrying on similar productive activities to form an industry classification.

Under this guideline, the State Insurance Regulatory Authority (SIRA) is providing the process for employers to submit a Request for Review of their Primary Activity.

Please Note: All reviews will be undertaken without regard to relevant industry rates. This means that if SIRA determines that the primary activity is to be re-assigned to a different WIC, the applicable industry rate for all employers assigned to the primary activity concerned may increase, decrease or experience no change.

Submitting a Request for Review

When can I lodge a Request for Review?

In certain cases, an employer may consider that the primary activity they have been assigned is better grouped with other primary activities that are more similar to activities found within another industry group.

Where an employer accepts that the primary activity that has been assigned to their workers compensation policy is correct, but considers that their listed primary activity may be better grouped within another industry classification, they are encouraged to submit a request for review with SIRA.

Alternatively, if an employer feels that they are engaged in a primary activity that is not reflected in Annexure A of the Market Practice and Premium Guidelines, then the employer may make an application for consideration to be given for the inclusion of a new primary activity.

Who can request a review?

Employers may make a submission directly with SIRA or alternatively through a consultant or advisor. If the application for a review is being submitted by someone other than the employer then a letter of authority must accompany the application.

What do I need to include in my application?

The employer must provide detailed reasons as to why their primary activity has been incorrectly assigned to the current industry classification and also why the proposed industry classification or classifications is/are more appropriate.

Each submission must also provide substantial evidence to support the submission to re-allocate the primary activity. This should include an analysis of worker functions and activities within the business, as well as jurisdictional comparisons for the treatment of the primary activity. Trends and comparisons of claims data between the employer’s current primary activity and the proposed Workers Compensation Industry Classification (WIC) may also be submitted for consideration.

Submissions for a Request for Review of a primary activity should be made with the assistance of the insurer. The insurer can provide the employer with any claims data relevant to the employer’s primary activity and the claims data relating to the destination WIC. The insurer will also be required to provide reasons why they support or do not support the employer’s submission.

Where do I send the Request for Review?