Workers Compensation Insurance
Do you employ workers in your business? This also includes you if you are on the payroll and have your own company.
Workers compensation insurance is a crucial component of Australia's workplace safety framework, providing financial protection for employees who suffer work-related injuries or illnesses. While the overarching principles of workers compensation are consistent across the country, each Australian state and territory has its own set of regulations and requirements.
In this blog post, we will explore the key things to know in workers compensation insurance across various states.
NEW SOUTH WALES
Compulsory for all employers in NSW, unless you are considered an ‘exempt employer’ per below.
As an employer, you’re not required to get an insurance policy if: - you pay $7,500 or less in annual wages & payments to some subcontractors - you don't employ an apprentice or trainee - you are not a member of a group for premium purposes - you are a sole trader or partner in a partnership or an individual trustee of a trust with no employees
Working directors of a corporation are considered employees of the corporation.
If you don’t have workers compensation insurance, your business may be fined or penalised up to $55,000 and/or six months’ imprisonment.
More information can be found on the iCare website however you can also speak to your insurance broker.
VICTORIA
Compulsory for all employers in VIC, unless you are considered an ‘exempt employer’ per below.
As an employer, you’re not required to get an insurance policy if: - you pay $7,500 or less in annual wages & payments to some subcontractors - you are a sole trader or partner in a partnership or an individual trustee of a trust with no employees - you are not a member of a group for premium purposes.
you are a company and you do all the contract work for your company's one and only business client.
Working directors of a corporation are considered employees of the corporation.
If you're not registered for WorkCover insurance when you should be, you may face severe penalties. You can also be required to reimburse WorkSafe for any compensation paid to your injured workers.
More information can be found on the WorkSafe VIC website however you can also speak to your insurance broker.
QUEENSLAND
Compulsory for all employers in QLD of employees and some subcontractors
As an employer, you’re not required to get an insurance policy if: - you are not a member of a group for premium purposes - you are a sole trader or partner in a partnership or an individual trustee of a trust with no employees
Working directors of a corporation are considered employees of the corporation.
Known as "accident insurance" in QLD
More information can be found on the WorkSafe QLD website however you can also speak to your insurance broker.
SOUTH AUSTRALIA
Compulsory for all employers in SA, unless you pay $14,919 or less in annual wages & payments to some subcontractors
As an employer, you’re not required to get an insurance policy if: - you are not a member of a group for premium purposes - you are a sole trader or partner in a partnership or an individual trustee of a trust with no employees
Working directors of a corporation are considered employees of the corporation.
More information can be found on the Return to Work SA website however you can also speak to your insurance broker.
WESTERN AUSTRALIA
Compulsory for all employers in WA, unless you are considered an ‘exempt employer’ per below.
As an employer, you’re not required to get an insurance policy if: - you are not a member of a group for premium purposes - you are a sole trader or partner in a partnership or an individual trustee of a trust with no employees
Working directors of a corporation are considered employees of the corporation.
More information can be found on the WorkCover WA website however you can also speak to your insurance broker.
TASMANIA
Compulsory for all employers in TAS, unless you are considered an ‘exempt employer’ per below.
As an employer, you’re not required to get an insurance policy if: - you are not a member of a group for premium purposes - you are a sole trader or partner in a partnership or an individual trustee of a trust with no employees
Working directors of a corporation are considered employees of the corporation.
More information can be found on the WorkSafe Tasmania website however you can also speak to your insurance broker.
NORTHERN TERRITORY
Compulsory for all employers in NT, unless you are considered an ‘exempt employer’ per below.
As an employer, you’re not required to get an insurance policy if: - you are not a member of a group for premium purposes
Working directors of a corporation are considered employees of the corporation.
If the business is owned by an individual or partnership (not a company), immediate family members of those individuals are only covered if their personal details and their remuneration are disclosed to the insurer at the time the person commences employment, when a policy is obtained or at the renewal of a policy.
More information can be found on the NT WorkSafe website however you can also speak to your insurance broker.
AUSTRALIAN CAPITAL TERRITORY
Compulsory for all employers in ACT, unless you are considered an ‘exempt employer’ per below.
As an employer, you’re not required to get an insurance policy if: - you are not a member of a group for premium purposes - you are a sole trader or partner in a partnership or an individual trustee of a trust with no employees
Working directors of a corporation are considered employees of the corporation.
Any employers who do not hold a current workers’ compensation policy may be issued with an on-the-spot fine (infringement notice) by WorkSafe ACT inspectors of $7,500. In addition to an on-the-spot fine, employers are liable to pay up to double the amount avoided in unpaid workers’ compensation insurance premiums as determined by Worksafe ACT.
More information can be found on the ACT Work Safety Commissione's website however you can also speak to your insurance broker.
If you have any questions please call 02 9030 0269 or email hello@twosides.com.au.
Natalie Lennon
Founder & Director
02 9030 0269
@twosidesHQ Facebook & Instagram