Workers Compensation Insurance WA

• General requirement: Private-sector employers in the Australian Capital Territory must hold an active Workers Compensation Insurance policy for workers covered by the ACT scheme.
• Scheme type: Privately underwritten scheme, commonly called a risk state. Private-sector employers obtain cover through an insurer approved by WorkSafe ACT.
• Regulator: WorkSafe ACT.
• Contractor considerations: ACT guidance states that a worker can include a person performing work under a contract of service, including certain subcontractors.

Labour-only arrangements are common in construction and trade work. If you engage someone mainly for their labour, they may need to be considered under your workers compensation obligations.

This is especially relevant where the person works under your supervision, forms part of your site workforce or is not operating as a separate independent business.

• General requirement: Employers in New South Wales must generally hold Workers Compensation Insurance where they employ workers or deemed workers, subject to limited exemptions under the NSW scheme.
• Scheme type: Publicly underwritten managed fund. Most employers obtain cover through the Nominal Insurer, which is managed by icare. Specialised insurers and approved self-insurers also operate within the NSW scheme.
• Regulator: State Insurance Regulatory Authority.
• Contractor considerations: Contractors may be deemed workers where the work is labour-heavy, where the hirer controls how the work is performed, or where the arrangement operates more like employment than an independent business arrangement.

In NSW, a person who is a worker or deemed worker must be included in the employer’s wages declaration for premium calculation.

This is especially relevant for trade businesses using labour-only subcontractors, regular site crews or contractors who work under direct supervision.

• General requirement: Employers in the Northern Territory must generally hold Workers Compensation Insurance for workers covered by the NT scheme unless they are approved to self-insure.
• Scheme type: Privately underwritten scheme, commonly called a risk state. Employers obtain cover through an insurer approved by NT WorkSafe.
• Regulator: NT WorkSafe.
• Worker definition: The Northern Territory aligns the definition of a worker with the PAYG withholding test used under Australian taxation laws.

If a person is treated as an employee for PAYG withholding purposes, they may need to be covered for workers compensation even if the business describes them as a contractor.

This is relevant for contractors involved in remote work, mining support, civil works, transport, maintenance, shutdowns and project-based labour.

• General requirement: Employers in Queensland must generally hold a Workers Compensation Insurance policy for their workers unless they are approved as a self-insurer.
• Scheme type: Publicly underwritten managed fund. WorkCover Queensland is the government-owned scheme insurer for most Queensland employers.
• Regulator: Workers’ Compensation Regulatory Services.
• Contractor considerations: Queensland uses worker determination tests to assess whether someone should be covered for workers compensation.

Contractor arrangements may need closer review where the contractor works under your direction, uses your systems, follows your site processes or operates more like part of your workforce than a separate business.

For trade businesses, this can include labour-only contractors, regular subcontractors and workers who do not carry the full commercial risk of an independent business.

• General requirement: Employers with workers in South Australia must generally register under the Return to Work scheme, subject to the scheme’s registration rules and exemptions.
• Scheme type: Publicly underwritten managed fund. ReturnToWorkSA administers the scheme, with claims services delivered through appointed claims agents.
• Regulator: ReturnToWorkSA.
• Contractor considerations: Contractor arrangements may need review where the contract is mainly for labour, where the person is integrated into the business or where the working relationship looks more like employment than an independent contracting arrangement.

South Australia’s worker definition is relevant for employers, contractors and workers who are uncertain about coverage under the Return to Work scheme.

Sole traders may have different options depending on their structure and circumstances. Employers and contractors should obtain confirmation before assuming cover applies.

• General requirement: Employers in Tasmania must generally hold Workers Compensation Insurance for workers covered by the state scheme or hold a permit to self-insure.
• Scheme type: Privately underwritten scheme, commonly called a risk state. Employers obtain cover through an insurer licensed by the WorkCover Tasmania Board.
• Regulator: WorkSafe Tasmania.
• Contractor considerations: Contractor arrangements may need closer review where a contractor works regular hours for your business, follows your instructions, uses your processes and operates like part of your team.

Tasmania requires employers to hold Workers Compensation Insurance for workers covered under the state scheme.

This can be relevant for small trade businesses that use the same subcontractors across ongoing jobs or treat subcontractors like internal labour.

• General requirement: Employers in Victoria must generally register for WorkCover insurance where they employ workers, subject to limited exemptions under the Victorian scheme.
• Scheme type: Publicly underwritten managed fund. WorkSafe Victoria is the scheme insurer, with authorised agents handling many policy and claim functions on its behalf.
• Regulator: WorkSafe Victoria.
• Contractor considerations: Victoria’s contractor rules may consider whether materials or equipment are the main purpose of the contract, whether the same person performs most of the work and whether a large share of the contractor’s income comes from the hirer.

Contractors may be deemed workers where the hirer exercises substantial control over the working arrangement or where the contractor is economically dependent on one business.

This can be relevant for builders, subcontractor-heavy trade businesses, maintenance contractors and businesses that rely on the same subcontractors across ongoing projects.

• General requirement: Workers Compensation Insurance is mandatory for employers with workers in Western Australia.
• Scheme type: Privately underwritten scheme, commonly called a risk state. Employers obtain cover through an insurer licensed by WorkCover WA.
• Regulator: WorkCover WA.
• Contractor considerations: Contractors and subcontractors may need closer review where the work is mainly for personal labour or service, or where the arrangement is not part of the contractor’s regular independent business.

Employers in WA must hold Workers Compensation Insurance for anyone they employ who the legislation defines as a worker, including cover for common law claims.

ABN status alone does not decide whether someone is treated as a worker.

If you are a sole trader working alone, you are generally not personally covered by a standard Workers Compensation Insurance policy. Personal Accident and Illness Insurance may be worth considering to help manage income risk if you are off the tools due to injury or illness, subject to policy terms, conditions, limits and exclusions.