Our operating environment
The Authority operates within a complex legislative, economic, industrial and social environment. The Scheme’s effectiveness relies on the active participation of employers and workers.
External factors
Performance is influenced not only by the design and governance of the Scheme itself, but also by broader labour market trends, industry practices, regulatory requirements and the evolving expectations of the Victorian community.
Factors outside the Authority’s direct control, such as economic conditions, workforce mobility, sector‑specific employment patterns, and changes to legislation, can influence the financial performance and the effectiveness of the Scheme’s compliance activities.
Also important to the Authority are stakeholder expectations and community perceptions which may influence public confidence in the Scheme.
Both micro-economic and macro-economic factors can affect the levy rate required for the ongoing sustainability of the Scheme.
Micro-economic factors include employer behaviours such as company liquidations, non-reporting of workers or under-reporting of worker hours. These can all affect the levy rate for the Scheme. Separately, macro-economic factors include demographic shifts in the covered workforces of the Scheme and global investment conditions that can impact the return on the Scheme’s investment objectives and valuation of assets.
Portable long service benefits recognition and measurement
Workers in the community services, contract cleaning and security industries become entitled to portable long service benefits after seven years of recognised service. In accordance with relevant accounting and actuarial requirements, the Authority measures and records an accounting liability for these benefits based on the present value of expected future payments, adjusted for relevant risks specific to each covered sector in order to accurately measure this liability.
The calculations are performed by the Authority’s appointed actuary using an actuarial valuation method that takes into account assumptions including but not limited to estimated rates of departure from and returns to the industry; mortality rates; disability rates; expected rates of increase in wages in the industries of covered workers; discount rates; and the projected rates of return on the Authority’s investments.
Internal factors
Internal factors also impact and influence the performance of the Authority and the Scheme. In particular, the Authority’s organisational structure, workforce capability as well as the adequacy of its systems and processes that underpin the effective administration of the Scheme. These internal capabilities enable the Authority to maintain accurate records, undertake risk-based compliance and enforcement activities, and ensure sound financial management.
As the Authority continues to mature, ongoing investment in systems, data, capability and processes will further enhance service delivery and responsiveness to emerging operational demands. Our ability to adapt to changing conditions and embed continuous improvement practices remains critical to sustaining high performance and meeting our strategic objectives.
Executing our responsibilities
The Authority’s success is the sum of its parts. The different Business Units that comprise the Authority span multiple operational roles and functions performed by the staff of the Authority.
This operates as an integrated system where the Authority values the work of each staff member and their contributions to the overall achievement of the Authority’s objectives.
Our people
Our workforce is a critical enabler of organisational performance and long term success. We recognise that achieving our strategic objectives relies on the skills, professionalism, and wellbeing of our people. We are committed to attracting, developing, and retaining a capable and engaged workforce, supported by a positive culture and strong leadership, so we can continue to deliver on our statutory responsibilities with excellence.
Integrated role of the Authority
Compliance and enforcement
- Compliance monitoring
- Investigations
- Prosecutions
- Corporate governance
Engage and educate
- Worker and employer awareness and engagement
- Contact centre
- Guidance and support
Registration
- Registration under the Act: Employers and workers
- Accurate collection of data
Reporting service
- Employer reporting
- Data validation
- Missing service
- Benefit and liabilities
Funds and sustainability
- Levy setting
- Levy collection
- Funds investment
Deliver entitlements
- Claims processing
- Assessments
- Levy payments
- Debtor management
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