(1) An employer is an
"exempt employer" during a financial year while the employer has reasonable grounds for believing that the total amount of wages that will be payable by the employer during the financial year to workers employed by the employer will be not more than the exemption limit for that financial year.
(2) An employer is not an exempt employer whenever the employer--(a) is a member of a group constituted under Division 2A, or(b) employs a person under a training contract (within the meaning of the Apprenticeship and Traineeship Act 2001 ).Note : A
"training contract" is a contract entered into for the purpose of establishing an apprenticeship or traineeship.
(3) An employer who is an exempt employer for the whole or any part of a financial year is deemed to have obtained from the Nominal Insurer (and the Nominal Insurer is deemed to have issued) a policy of insurance in compliance with section 155 (an
"exempt employer policy" ) for any period for which the employer is an exempt employer during the financial year. No premium is payable for an exempt employer policy.
(4) An exempt employer policy covers the employer for any period for which the employer is an exempt employer but does not cover the employer for any period for which the employer has actually obtained a policy of insurance under section 155.
(5) An administration fee of an amount prescribed by the regulations is payable to the Nominal Insurer by an employer in respect of each claim made against the employer in respect of an injury to a worker received during any period for which an exempt employer policy covers the employer.
(6) The regulations may make provision for or with respect to the payment of an administration fee, including provision for or with respect to any of the following--(a) the period within which an administration fee must be paid,(b) the payment of a late payment fee if an administration fee is not paid within the required period,(c) the full or partial waiver or refund of an administration fee or late payment fee.
(7) The Nominal Insurer is entitled to recover as a debt in a court of competent jurisdiction an administration fee payable by an employer together with any late payment fee payable.
(8) In this section--
"exemption limit" for a financial year means $7,500 or such other amount as may be fixed by the Workers Compensation Market Practice and Premiums Guidelines as the exemption limit for that financial year.
"financial year" means a period of 12 months commencing on 1 July in any year.
"wages" means wages as defined in section 174 and includes any distribution to a worker as a beneficiary under a trust that would (under section 174AA) constitute wages for the purposes of section 174.