What does a certificate of currency show?
A certificate of currency is issued by an insurer or broker to confirm that a policy was in force when the certificate was issued. It summarises the policy: insurer, policy number, insured party, type of cover, limit and period. It does not show the full policy wording, exclusions or conditions. If your subcontract requires particular cover, such as a principal's interest noted on the policy or cover for a specific activity, the certificate alone may not answer the question, and your broker should review the policy. Treat the certificate as evidence of currency at a date, checked against what the subcontract requires.
Which fields should you check on every certificate?
Write the subcontract's insurance requirements into the register as fields, then check each certificate against them when it arrives. A short, consistent list makes the check repeatable by anyone in the office. Record who checked each certificate and when, and keep the exact version you checked, because brokers reissue certificates and a later copy may differ from the one you relied on. Where a field cannot be read, ask for a clearer copy instead of guessing.
- Insured name and ABN, matched to the legal entity named in the subcontract.
- Policy type: public liability, workers compensation, contract works or professional indemnity, as the subcontract requires.
- Limit of indemnity compared with the subcontract minimum.
- Period of insurance compared with the planned work dates, including any extension.
- Any noting of your company or the principal that the subcontract requires.
- Issue date, so a certificate issued months ago is not treated as current.
What is a NSW subcontractor's statement?
Revenue NSW publishes form OPT 011 for section 175B of the Workers Compensation Act 1987, Schedule 2 Part 5 of the Payroll Tax Act 2007 and section 127 of the Industrial Relations Act 1996. The form says that if it is completed in line with those provisions, the principal contractor is relieved of liability for workers compensation premiums, payroll tax and remuneration payable by the subcontractor. The statement covers a stated period, refers to a payment claim date and must be accompanied by the workers compensation certificate of currency where required. Revenue NSW says sequential statements should give continuous coverage, and principal contractors must keep copies for up to seven years.
What should the office check on each statement?
Request a new statement with each payment claim and check it before the claim is processed. The form also covers subcontractors who use their own subcontractors: they declare that they hold statements from them for the same period. Knowingly giving a false statement is an offence under the legislation the form cites, but that does not remove the need to check what arrives. File each statement with the payment claim it relates to, so the link between the period covered and the money paid is clear if questions come up later.
- The period starts the day after the previous statement ended, with no gaps.
- The payment claim date matches the claim being processed.
- The certificate of currency is attached and dated.
- The signatory is a director or a person authorised by the subcontractor.
What about Victoria and other states?
WorkSafe Victoria says that if you use contractors, it is your responsibility to find out whether WorkSafe considers them workers, because that can affect your remuneration and premium, and that you may be liable if a contractor is injured while working for you. It also says this has to be determined each time you hire a contractor. Record that determination on the subcontractor's file alongside the certificates. For Queensland, WA and other jurisdictions, check with the workers compensation regulator what evidence a principal contractor should hold, and do not assume the NSW form applies.
Which checks can software take over?
Most of the checking is comparing fields, which software does consistently. It can read certificates on arrival, including scanned ones, extract the fields above, compare them with the subcontract requirements and flag mismatches with the page attached. ABN Lookup, run by the Australian Business Register, shows whether an ABN is active or cancelled, the business type, GST status and historical trading names, which helps resolve name mismatches. Software can also check statement dates for continuity and draft the request for a missing document. Deciding whether cover is adequate, whether a subcontractor can start, and whether to withhold payment stays with your contract administrator, broker and lawyer.