Workers’ compensation scheme regulators have been asked to clarify whether payments from the $130 billion JobKeeper wage subsidy scheme fall under the category of “declarable remuneration” for the purpose of calculating premium.

Willis Towers Watson says it has submitted a request for more information from the respective jurisdictions in response to clients’ concerns over the matter.

“Our position to the regulators is that it shouldn’t be included as a remuneration,” Head of Workplace Risk for Australasia Kosta Savidakis told insuranceNEWS.com.au.

“I think it all comes down to the legislation and how that legislation is interpreted and applied and what is counted as declarable remuneration or not.

“Obviously that in itself is a complex issue, which is why we are seeking clarity direct from each of the regulators.”

Workers’ compensation premiums are based in part on the payroll. For businesses in sectors such as retail and aviation, clarity over whether JobKeeper payments qualify as “declarable remuneration” is especially critical.

“A lot of the time, these workers are not working from home and the risk isn’t there,” Mr Savidakis said. “So why should you expect an employer to pay a premium on a risk which isn’t there at this point in time?

“The inclusion of it as declarable remuneration would effectively mean our clients would be paying a premium on those JobKeeper payments and there are clients who are concerned about that.

“That has what led us to approach each of the state and territory regulators to seek clarity on what the position will be in terms of whether it’s treated that way. We await their response.”