Workplace Splits FAQ's

 

What is a workplace?
A workplace is defined as:

  • an area or two or more contiguous areas of land in Victoria occupied by an employer
  • where workers of the employer work or pass through in the course of their employment
  • whether or not workers of another employer also work or pass through the same area during the course of their employment.

(See Schedule 1, Item 2 of the WorkCover Insurance Premiums Order for the full definition)

Top

What are contiguous areas?
A “workplace” can consist of 2 or more areas (known as contiguous areas) of land if:

  • they are in the same building; or
  • separated only by a road or railway or other similar area across or around which movement is reasonably possible.

Note: Each of the area’s need to be physically distinct in a manner that is readily recognizable by those engaged in industry.

(See Schedule 1, Item 2(2) of the WorkCover Insurance Premiums Order for the full definition)

Top

What is your predominant activity?
Your predominant activity is the main or dominant activity that you are engaged in at your workplace.

(See Schedule 1, Item 3 of the WorkCover Insurance Premiums Order for the full definition)

Top

How do we decide what is your predominant activity?
There are a number of different measures or indicators of your predominant activity that we might look at when determining your predominant activity including:

  • the goods produced and/or services provided by your workplace
  • the activities carried on in the workplace
  • what you consider to be the main activity carried on in the workplace, and why
  • a list of key types of raw materials, types of equipment or processes used to produce the goods and/or provide services at the workplace
  • a breakdown of the sales/revenue, costs of goods produced and cost of labour for each of the listed goods and/or services you produced or provided during the preceding period of 12 months.
  • whether or not you own the goods you provide
  • whether or not you provide these goods and/or services internally to another of your workplaces
  • whether or not you provide these goods and/or services to a business:
    • in which the persons who have a controlling interest in your business also have a controlling interest, or
    • which is connected, associated or related to your business.

(See Schedule 1, Item 3(2) of the WorkCover Insurance Premiums Order for more information)

Top

What are the workplace split rules?
An employer can apply for a split workplace where:

  • a workplace is comprised of two or more distinct contiguous areas; and
  • the predominant activity carried on in each of those areas is different.

A workplace cannot be split if -

(a) The predominant activity at a contiguous area is “wholly or mainly”:

i. dependent on, or
ii. ancillary to, or
iii. occurs as a consequence of

the predominant activity of one or more of the other
contiguous areas, or

(b) The goods/services produced/provided at a contiguous area are “wholly or mainly” produced/provided:

ii. for the use or purpose of; or
iii. to support the operations carried on in

one or more of the other contiguous areas.

(c) Notwithstanding the previous rules, a workplace cannot be split if the predominant activity at the contiguous area comes within one of the categories of services listed below and is mainly or wholly carried on in relation to the operations of one or more other contiguous areas.

  • clerical services;
  • management services;
  • administrative services;
  • sales and marketing services;
  • warehousing services associated with manufacturing, wholesaling or retailing

Remember: This list should not be treated as an exhaustive list of categories.

(See Schedule 1, Items 3(3), (4), (5) of the WorkCover Insurance Premiums Order for more information)

Top

What are the rules for splits for Corporate Head Offices?
An employer can apply for a split workplace of a contiguous area as a Corporate Head Office where the following two criteria are met:

  • the predominant activity of that area corresponds exactly to one of the two corporate head office industry classifications; and
  • the employer has at least one workplace to which the contiguous area in question provides corporate administration that is outside the contiguous areas being considered i.e. provides corporate administration to at least one contiguous and one non-contiguous area.

Note:

  • The non contiguous workplace can be outside the State of Victoria, but not outside of Australia.

(See Schedule 1, Items 3(6) & (7) of the WorkCover Insurance Premiums Order for more detail)

Top

    Quicklinks