Notify WorkSafe Call 1300 366 322
Notify WorkSafe Call 1300 366 322

Financial requirements for a new entity employer

The Board requires additional financial information from a new entity employer — that is, a legal entity with no history of operating in Tasmania — that is applying for a permit to self-insure.

What is required

This additional financial information must demonstrate that you have sufficient financial resources to become a self-insurer, so both historical and forecast financial information is required.

The information required may vary depending on factors such as the length of the period of trading, nature of business, structure and history. Call WorkCover on 1300 366 322 to determine exactly what information is required.

Historical financial information

You must provide audited financial reports that cover your trading period from commencement to date (or as near as practical to this period).

These reports are either Special Purpose Financial Statements or General Purpose Financial Statements.

The Financial Report is to consist of:

  • statement of financial performance, statement of financial position, statement of cash flows
  • notes to the financial statements
  • directors’ declaration

The Financial Report is to be made in accordance with the Corporations Law, and shall:

  • provide a true and fair view of the entity’s financial position at the end of the trading period and of its performance for the period ended on that date
  • comply with Australian Accounting Standards and the Corporations Regulations
  • meet other mandatory professional reporting and statutory requirements.

Certain disclosure exclusions are allowable under Special Purpose Financial Statements. These are:

  • presentation and disclosure of financial instruments (AAS23)
  • directors’ and executives’ remuneration
  • commitments
  • segment information (AAS-16).

An independent audit is to:

  • be performed by a registered organisation auditor under the Corporations Law in accordance with Australian Auditing Standards
  • provide an assurance that the financial statements are free of material misstatement
  • form an opinion as to whether, in all material respects, the financial statements are in accordance with the requirements outlined above.

Forecast financial information

You must provide forecasted financial reports that cover a forecast 12-month trading period, starting from a date WorkCover determines.

The Forecast Financial Report is to consist of:

  • statement of financial performance, statement of financial position, statement of cash flows
  • directors’ declaration.

The Forecast Financial Report is to be prepared in accordance with Australian Generally Accepted Accounting Principles (GAAP) and must:

  • provide a true and fair view of the entity’s projected financial position at the end of the forecast trading period and of its performance for the period ended on that date
  • comply with Accounting Standards and the Corporations Regulations
  • meet other mandatory professional reporting and statutory requirements.

An independent audit is to:

  • to be performed by a registered organisation auditor under the Corporations Law in accordance with Australian Auditing Standards
  • to provide a statement of negative assurance on best estimate assumptions used by management to prepare the forecast financial statements
  • to form an opinion based on the examination of the evidence supporting the assumptions that nothing has come to their attention to cause them to believe that the assumptions used do not provide a reasonable basis for the preparation of the forecast.

Subject to the period of trading by the applicant, the Board may also require directors’ declarations on:

  • working capital: stating that the entity has adequate working capital to continue as a going concern
  • statement of indebtedness: stating the outstanding overdrafts, bank loans, lease liabilities and contingent liabilities of the entity as at commencement date.
Updated: 10th December 2019