Document ID: chunk:federal_register_of_legislation:F2022L01140:clause:1_6
Version: federal_register_of_legislation:F2022L01140
Segment Type: clause
Provision Reference: sch 1 cl 6
Character Range: 2339–4737

6  Determining Premiums
In determining the amount of premiums to be paid by each Entity and by each Commonwealth authority under the Act in respect of a financial year, the following guidelines apply to Comcare:
     (1)        Comcare should maintain the scheme in a fully-funded position;
     (2)        The amount of premiums determined should balance responsiveness to changes in claims experience with the need for stable and predictable premiums;
     (3)        Significant long-term cross-subsidisation between Entities and Commonwealth authorities should be avoided;
     (4)        The methodology for calculation of premiums in one financial year should be used to calculate penalty and bonus amounts in the following year (regardless of whether the methodology has been varied in the interim);
     (5)        The impact of claim performance and other variable costs on premiums must be transparent and explained to Entities and Commonwealth authorities;
     (6)        Indicative premiums should be advised to each Entity and Commonwealth authority in time for consideration in the context of that Entity or Commonwealth authority's budgets for the following financial year;
     (7)        Adjustments due to correction of data should only be made if identified before finalisation of the charge to which they relate, except for errors made by Comcare;
     (8)        Significant changes to the methodology for calculation of premiums must be explained to Entities and Commonwealth authorities;
     (9)        A minimum premium must be determined to apply in relation to each Entity and Commonwealth authority, to ensure the recovery of administrative costs incurred by Comcare; and
     (10)     Comcare must advise the Commission annually on its compliance with these guidelines.

Note:
(1)            Section 97J of the Act provides for the review by Comcare, at the request of an Entity or Commonwealth authority, of a premium determination under section 97 of the Act;
(2)            Section 97K of the Act provides for the further review by the Commission, at the request of an Entity or Commonwealth authority, of a premium determination under section 97 of the Act that has been reviewed by Comcare under section 97J of the Act;
(3)            Section 97M of the Act provides for the variation by Comcare, in certain specified circumstances, of a premium determination.