Why are superannuation and other salary components included in rateable remuneration?
There are a few reasons for this. Benefits paid to workers are more than just wages, including medical costs and lump sum payments for impairment. To exclude superannuation payments would provide a strong incentive to pay workers large amounts of superannuation rather than wages as a means of reducing premium costs. Also, as WorkSafe still needs to collect enough premium to fund the scheme, a shrinking remuneration base would just lead to higher industry rates. Industry rates would not rise evenly though, as some employers may be better able to shift salary into superannuation, meaning that some employers would cross-subsidise others based just on an ability to minimise remuneration. To encourage premium minimisation through anything other than workplace safety runs against our efforts to make premiums fairer.
