SENTINEL · METHODOLOGY · v1.0
— HOW NEXES SENTINEL ACTUALLY WORKS —

Total transparency.
No black box.

Most AI tools say “trust us, we're trained on Australian regulations.” We tell you exactly what Sentinel reads, what it cross-references against, when the reference data was last updated, and how it's prevented from hallucinating.

Nexes Sentinel is an AI compliance intelligence agent trained on Australian regulatory data: NSW WIC code schedules, all 122 Modern Awards, Privacy Act Australian Privacy Principles, Fair Work compliance rules, ATO sham contracting indicators. Updated quarterly. Scans your existing documents, identifies exposures, hands findings to your licensed broker / accountant / lawyer for action.

01 · WHAT SENTINEL READS

Your documents

Sentinel reads documents you provide:

All documents stay in our private operations environment. Documents are processed via Anthropic Claude API under their commercial terms (no training data retention).

02 · REGULATORY DATA SENTINEL CROSS-REFERENCES AGAINST

INSURANCE
NSW icare WIC schedule
35+ workers compensation industry codes with current premium rates. Sourced directly from icare NSW public publications.
UPDATED QUARTERLY · LAST Q2 2026
INSURANCE
Standard exclusion patterns library
Common policy exclusion language patterns from QBE, Allianz, Liberty, Zurich, CGU — built from publicly available product disclosure statements.
UPDATED QUARTERLY · LAST Q2 2026
WORKFORCE
Fair Work Modern Awards
All 122 Modern Awards including current Annual Wage Review rates. Sourced from Fair Work Commission published award documents.
UPDATED ANNUALLY (1 JULY) · LAST Q3 2025
WORKFORCE
ATO sham contracting indicators
Control test, integration test, results test, mutuality of obligation indicators. Sourced from ATO public rulings and case law summaries.
UPDATED QUARTERLY · LAST Q2 2026
PRIVACY
Australian Privacy Principles
All 13 APPs plus Privacy Act 2026 amendments (mandatory data breach notification, penalty regime). Sourced from OAIC public guidance.
UPDATED QUARTERLY · LAST Q2 2026
TAX
ATO published deduction rulings
Current instant asset write-off thresholds, R&D Tax Incentive eligibility criteria, fuel tax credit rates, depreciation pools.
UPDATED QUARTERLY · LAST Q2 2026

03 · HOW THE AUDIT PROCESS RUNS

Document ingestion

Customer documents are uploaded (or emailed) to Nexes. They are stored in a private operations workspace, encrypted at rest.

Structured extraction

Sentinel parses each document and extracts structured data points (WIC code, declared wages, named beneficiaries, exclusion clauses, sub-limits).

Pattern matching against regulatory data

Sentinel cross-references extracted data against the regulatory reference library. Standard checks run: WIC code vs activity, wage declaration vs award rates, exclusion language vs activity scope, COI beneficiaries vs client roster, cyber/D&O presence checks.

Finding generation with citations

Each potential finding is generated as a draft. Every finding must cite the source document and quote the exact text. Findings without citable evidence are dropped.

Human review

A Nexes operator manually reviews every finding against the source document before the report is delivered. This is the anti-hallucination control. We never auto-deliver without human review.

Broker-ready PDF delivery

Final 5-page PDF report delivered via email. Each finding has: severity, observation, quoted evidence with citation, estimated dollar impact (conservatively), and a specific action item for your licensed professional.

04 · ANTI-HALLUCINATION CONTROLS

Findings without citable evidence are dropped. Every finding in a Nexes report must quote the exact source text and cite the document and page. If Sentinel cannot find evidence in the supplied documents, it returns “no evidence — recommend customer confirms with broker” rather than fabricating a finding.

Additional controls:

05 · UPDATE CADENCE

Regulatory data is refreshed quarterly. Major regulatory changes (e.g. new Privacy Act amendments, Annual Wage Review, icare premium rate changes) trigger an immediate update outside the quarterly cycle.

Reference dataCadenceStatus
NSW icare WIC scheduleQuarterlyCURRENT · Q2 2026
Insurer exclusion library (5 insurers)QuarterlyCURRENT · Q2 2026
Modern Awards (122)Annual (1 July)CURRENT · FY 25-26
ATO sham contracting indicatorsQuarterlyCURRENT · Q2 2026
Australian Privacy PrinciplesQuarterlyCURRENT · Q2 2026
ATO deduction rulingsQuarterlyCURRENT · Q2 2026

06 · WHAT WE WON'T DO

Sentinel is deliberately constrained. It will not:

If Sentinel finds something significant, it flags it for your licensed professional to action. See Legal & Scope for the full licensing position.

NEXES SENTINEL · v1.0 · 2026-05-12 · methodology page updated when reference data refreshes