[1993] 2 VR 10
ACCIDENT COMPENSATION COMMISSION v JOHN VALVES PTY LTD
SUPREME COURT OF VICTORIA APPEAL DIVISION
CROCKETT (1), SMITH (2), and ASHLEY (3), JJ
31 August 1992, 1-3 September 1992, 22 September 1992
[1993] 2 VR 10
Accident compensation — Workers' compensation scheme — Employer's levy — Classification of employer's industry — Contiguous areas — Separation of
establishments at commission's discretion — Degree of separateness needed — "Predominant activity" in operations at establishment — Predominant activity
determined by reference to work of employees at that establishment — Accident
Compensation Act 1985 (No 10191), s181(1), s181(2), s182(1), s182(2),
s187(2), s187(3) — Accident Compensation Regulations 1990, Sch 6
.
S187(1) of the Accident Compensation Act 1985 provides for the imposition of
a levy on an employer in respect of leviable remuneration paid or payable to
workers working at an establishment of the employer. The rate of levy depends
on the classification of the industry to which an employer's establishment is
categorised, and this in turn depends on the predominant activity carried on
in the operations in which workers are engaged at that establishment for the
relevant employer: s187(2) and s187(3). S181(1) defines "establishment" to
mean "an area, or two or more contiguous areas, of land in Victoria occupied
by an employer" where the employer's workers work, or through which they
pass, whether or not workers employed by another employer also work there or
pass through. The meaning of "contiguous areas" is further explained in
s181(2).
From 1985 to 1990, John Valves Pty Ltd's premises at Creswick had been
treated as a single establishment by the Accident Compensation Commission for
the purposes of imposition of the levy. In 1990, Valves applied to the
commission for assessment of levy on the footing that the premises consisted
of three different establishments, claiming each of the three areas had a
different "predominant activity". At the time, the entire premises were
classified to C2942T (predominant activity - iron casting) of Sch 6 to the
Accident Compensation Regulations 1990. The commission's rejection of the
application was overturned by the Accident Compensation Tribunal, and the
commission appealed to the Supreme Court pursuant to s61(3) of the Act. The
questions of law raised by the appeal included whether the tribunal had
correctly directed itself as to the requirements for the operation of
s182(2), and whether the machine shop and the administration office could
attract the classifications respectively assigned to them by the tribunal.
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[1993] 2 VR 10
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