WorkCover premium funding a viable alternative
Whilst Queensland businesses have the lowest workers compensation premiums nationally, averaging $1.20 per $100 in wages, the lump sum bill, due on 16 September 2018 is still a big hit to cash flows.
Hanrick Curran recommend business owners consider every opportunity to qualify for pre-payment discounts and avenues to smooth out expenses across the year to match business cash flows. Smoothing out expenses can reduce the need to rely on bank funded working capital and makes it more transparent for business owners to predict cash flow.
The 2018 WorkCover premiums can attract a 5% discount if wages are declared by 31 August 2018 and payment in full is made by 16 September 2018. Under the interest free Workers’ Compensation monthly payment plan a business can’t spread payments over the year and get the 5% discount, however there are avenues open to business owners to achieve this.
Hanrick Curran, through our association with Ausure Insurance Solutions, can offer business clients the ability to establish a WorkCover Premium Funding facility that will fund the upfront Workers’ Compensation premium so the business qualifies for the 5% discount and can spread the repayment out over 10 months. The interest payable on the premium funding facility will be evident in the quote we can arrange and will demonstrate the savings available to business owners structuring their premium payment in this manner.
To qualify for the pre-payment discounts you will need to respond by 21 August to be eligible.
For assistance on smoothing your business cashflow or for more information on WorkCover premium funding please contact your usual Hanrick Curran advisor. Alternatively, to obtain a quote for WorkCover Premium Funding please contact Trent Cornford from Ausure Insurance Solutions on 0422 391 183.