Workers Compensation

Workers Compensation in Australia — How It Works By State

Covers work-related injury and illness for your employees, and it is compulsory once you employ anyone. It runs on state-based schemes, so where your staff are based decides who can arrange it — in some states a broker cannot, because the government scheme is the only option.

What it covers

  • Medical costs for a work-related injury or illness
  • Weekly payments while an injured employee cannot work
  • Rehabilitation and return-to-work support
  • Your liability as the employer

What it does not

  • Contractors who are genuinely independent, though the test is not always obvious
  • Volunteers, who are not "workers" under any state scheme
  • Injury to members of the public — that is Public Liability

Worth knowing

In New South Wales, Victoria, Queensland and South Australia the scheme is a government monopoly and no broker can place the cover at any price. Our chat checks which state your workers are in before anything else, and tells you plainly if that is where you are.

What an insurer will ask you

These are the real questions, and why each one changes your premium. Our chat walks through them with you.

Which state or territory are your employees based in?

This decides everything. It is the first question we ask, because in four states the answer is that you deal with the government scheme directly and we would be wasting your time.

What are your total wages for the coming year?

Premium is calculated on wages, not headcount. The figure needs to include working directors, family members and contractor payments.

Are contractors used?

State deeming provisions can treat a contractor as a worker for compensation purposes, which changes both your wage base and who is covered.

Are volunteers used?

Volunteers are not covered by any state scheme, so a yes usually means there is a gap that needs addressing another way.

Tell us what you do, and we will take it from there.

No forms. Answer a few questions in chat and an authorised broker takes it to the market for you.

This page is general information only and does not take your objectives, financial situation or needs into account. Consider the Product Disclosure Statement before deciding. Cover is subject to the insurer’s terms and acceptance.