How is the annual cardholder subscription fee calculated if it has expired?


The RIW System does not allow for pro-rata annual cardholder subscription fees (known as the RIW card fee), irrespective of when a cardholder subscription expired. However, there are rules about how expired annual cardholder subscription fees and subscription anniversaries are managed, which are detailed below.


NOTE: The annual cardholder subscription fee uses the initial card issue date to calculate the annual and five year anniversaries. This ensures the RIW System can manage the requirement to replace the RIW card every five years to update the smart chip embedded in the RIW card.


 

Scenario 1

On the day of renewal, if the annual cardholder subscription expiry date is less than one year past the initial card issue date, the full annual cardholder subscription fee is paid for the remainder of the subscription period, and the next annual subscription anniversary date applies.

 

For example, Joe’s annual cardholder subscription is due on 17 January 2020.  His employer did not renew his subscription when it was due, and paid it on 20 August 2020, which was six months later.   His employer is required to pay the full annual cardholder subscription fee at time of renewal for the remaining six months, and the next subscription date will be 17 January 2021.

 

Scenario 2

On the day of renewal, if the annual cardholder subscription expiry date is more than one year past the initial card issue date, the full annual cardholder subscription fee is paid for the remainder of the subscription period, and the next annual subscription anniversary date applies. However, the year(s) missed will not require payment.

 

For example, Joe’s annual cardholder subscription is due on 17 January 2020.  His employer did not renew his subscription when it was due, and paid it on 20 August 2021, which was eighteen months later.   His employer is required to pay the full annual cardholder subscription fee at time of renewal for the remaining six months of his subscription. The next subscription date will be 17 January 2022.

 

Scenario 3

On the day of renewal, if the annual cardholder subscription fee expiry date is more than five years past the initial card issue date, the full annual cardholder subscription fee + card re-issuance at 5th year anniversary fee is paid, and a new subscription date commences on day of renewal. At this time, a new RIW card will be issued.

 

For example, Joe’s annual cardholder subscription fee is due on 17 January 2020. His employer did not renew his subscription when it was due, and then paid it on 20 August 2026, which is over five years from the initial card issue. His employer is required to pay the annual cardholder subscription fee + card re-issuance at 5th year anniversary fee, and the next subscription date will be 20 August 2027.




Annual cardholder subscription fees (known as the RIW card fee) and renewal costs are detailed in Schedule 1, Part A of the Company Registration Terms & Conditions.



RIW Knowledge Centre Article Link:

https://support.riw.net.au/support/solutions/articles/51000292653


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