Navigating the Audit Process: Your Guide to Compliance

Audit Process - Ensuring Accurate Declarations: As part of our commitment to compliance and education, WorkCover Queensland conducts audits throughout the year to verify that employers accurately declare wages and maintain appropriate coverage.

Employers may be subject to an audit based on:

  • Data matching with agencies like the Office of State Revenue and Australian Taxation Office
  • Information received from the public
  • Referrals from other businesses
  • Random selection.

If selected, a Compliance Auditor will contact you, explaining the audit process and outlining the required financial information. Under the Workers' Compensation and Rehabilitation Act 2003, WorkCover is authorized to request relevant documents, such as payroll reports, profit and loss statements, and subcontractor listings.

During the audit process, you may be contacted for additional documentation. Information requested:

  • Will be in writing
  • Must be provided within two weeks
  • Is treated with the utmost confidentiality, solely used for WorkCover obligations, and not disclosed to third parties.

For assistance or queries during the audit, contact your allocated Compliance Auditor.

The audit also includes a review of the WorkCover Industry Classification (WIC) to ensure alignment with your predominant business activity. WorkCover has a three-year lookback period during audits.

Outcome of the Audit:

  1. Underdeclaration: If wages are under-declared, your policy will be reassessed, requiring payment of any unpaid premium. A penalty may also apply.

  2. Overdeclaration: If wages are over-declared, the policy will be reassessed, and a refund or credit will be issued.

  3. Substantial Match: If a substantial match is found, usually no further action is required, and the audit concludes.

Reviewing a Decision:

If you disagree with the audit outcome, you can seek a review from the Workers' Compensation Regulator, allowing for a thorough examination of the decision. Learn more about the review process.

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