Workers Compensation Insurance: State-by-State Guide 2026

LegalPublished 17 October 2026·21 min read

By Australian Small Business Guide · How we produce our guides

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Workers compensation insurance is compulsory for almost every Australian employer and pays an injured worker's income, medical and rehabilitation costs. Each state and territory runs its own scheme. Queensland, WA, Tasmania, the ACT and the NT require cover from your first worker. NSW and Victoria exempt employers paying $7,500 or less a year with no apprentices or trainees, and SA exempts employers paying less than $16,806 in 2026–27. Premiums are your wages multiplied by an industry rate, adjusted for claims as you grow.

What you’ll get from this guide: Know whether you must insure, who to apply to in your state, what the premium is based on, which contractors count as workers, and what to do in the first days after an injury.

  • Workers comp is compulsory in every state and territory. NSW and Victoria exempt employers paying $7,500 or less with no apprentices or trainees; SA's 2026–27 cut-off is $16,806; the rest require cover from the first worker.
  • NSW, Victoria, Queensland and SA run government schemes. In WA, Tasmania, the ACT and the NT you buy a policy from a licensed private insurer.
  • Your premium is wages, as your scheme defines them (often including super), times your industry rate. Published 2026–27 averages run from about 1.3% of wages in Queensland to 2.18% suggested in Tasmania.
  • An ABN doesn't make someone a contractor for workers comp. Each state has its own test, and many contractors are deemed workers you must declare.
  • Workers comp never covers a sole trader or partner. Directors are covered in some states and not others.
  • Report injuries fast: 48 hours in NSW and the ACT, 3 working days in Tasmania, 5 business days in SA, 7 days to pass a claim to your insurer in WA.

Workers compensation insurance is compulsory for almost every Australian employer. It pays an injured worker's income, medical and rehabilitation costs, and each state and territory runs its own scheme. Queensland, WA, Tasmania, the ACT and the NT require cover from your first worker. NSW and Victoria exempt employers paying $7,500 or less a year with no apprentices or trainees, and SA exempts employers paying less than $16,806 in 2026–27.

This is general information, not financial product advice, and it doesn't consider your circumstances. Read the policy terms or your scheme's guide, and consider getting advice from your regulator, a licensed broker or an adviser.

At a glance (checked 17 October 2026)
Who must insure Almost every employer. Thresholds apply only in NSW, Victoria and SA.
Who sells it A state scheme in NSW, Victoria, Queensland and SA. Licensed private insurers in WA, Tasmania, the ACT and the NT.
What it costs Wages × your industry rate. 2026–27 published averages range from 1.343% (Queensland) to 2.18% suggested (Tasmania).
Who it covers Employees, apprentices, and contractors your state deems to be workers. Not you as a sole trader or partner.
If you skip it Your worker is still paid; the scheme recovers the claim costs from you, plus fines and back premiums.

State-by-state: who insures you and when you need a policy

Check the regulator's own page before relying on a threshold. Thresholds and rules are reviewed every year.

State or territory Who provides cover When you must have a policy How to apply Regulator or scheme contact
NSW icare, as Nominal Insurer, with claims handled by EML, Allianz, GIO, Gallagher Bassett or QBE. SIRA regulates. Some industries use licensed specialised insurers. When wages exceed $7,500 in a financial year, or from the start if you employ an apprentice or trainee or belong to a group of businesses. Exempt employers must still report injuries; claims against them attract a $175 fee. Online through icare. Cover starts when the policy is issued and can't be backdated. icare 13 44 22; SIRA 13 10 50
Victoria WorkSafe Victoria, through your choice of agent: Allianz, DXC, Gallagher Bassett or EML. When you pay, or expect to pay, more than $7,500 a year in rateable remuneration, or from the start if you engage any apprentice or trainee. A director paid more than $7,500 by their own company must register even with no other staff. Online Employer Services or an agent. WorkSafe must receive your registration within 60 days of you first meeting the requirement. WorkSafe Advisory 1800 136 089
Queensland WorkCover Queensland is the only insurer (apart from licensed self-insurers). From your first worker, with no wage threshold. Household workers need a separate household workers' policy. Online or by phone within 5 business days of starting to employ. Cover runs from the date you apply. WorkCover 1300 927 928
WA Six licensed private insurers: Allianz, GIO, Guild, CGU (also trading as WFI), QBE and Zurich. WorkCover WA regulates. At all times once you employ a worker. No wage threshold. Family members can be workers. Approach a licensed insurer directly or through a broker. WorkCover WA 1300 794 744
SA ReturnToWorkSA is the only insurer. EML and Gallagher Bassett manage claims. Register within 14 days of employing, unless you will pay less than $16,806 in total wages in 2026–27. Below the threshold, if a worker in your trade or business is injured you must register from the injury date and pay the minimum premium. Register online. ReturnToWorkSA 13 18 55
Tasmania Six licensed insurers: Allianz, GIO, Guild, CGU, QBE and Zurich. WorkSafe Tasmania and the WorkCover Tasmania Board regulate. At all times once you employ a worker. No wage threshold. A domestic worker becomes a worker after 48 hours of employment. Approach a licensed insurer. WorkSafe Tasmania 1300 366 322
ACT Five licensed insurers: Allianz, Guild, QBE, CGU and GIO. WorkSafe ACT regulates. At all times once you employ a worker. No wage threshold. Approach a licensed insurer. WorkSafe ACT 13 22 81
NT Five approved insurers: Allianz, CGU, GIO, QBE and TIO. NT WorkSafe regulates. You don't register with NT WorkSafe. Whenever you carry on business and employ one or more workers. Household workers are covered only above a prescribed pay level. Approach an approved insurer. NT WorkSafe 1800 250 713
Comcare Comcare covers Australian Government employees and corporations licensed to self-insure. Not available to an ordinary small business. Self-insurance needs a ministerial eligibility declaration and a licence. Not applicable for small business. Comcare 1300 366 979

State-by-state: premiums, 2026–27 rates and penalties

State or territory How the premium is set Published 2026–27 rate Premium rates page Penalty for not insuring
NSW Wages × Workers Compensation Industry Classification (WIC) rate. Small employers (average performance premium up to $30,000) pay the industry rate; larger employers are experience-rated. Minimum premium $240. Rates frozen at 2025–26 WIC rates for 2026–27 and 2027–28; 1.99% target collection rate maintained icare WICs and premium rates Penalties under s155 of the 1987 Act, plus repayment of any claim costs the Nominal Insurer pays. The 2026 reforms increased non-insurance penalties and added an underinsurance offence.
Victoria Remuneration × industry rate. Claims experience counts once remuneration exceeds $200,000. Minimum $400 plus GST; increases generally capped at 30%. Average 1.8% of remuneration WorkSafe industry rates Up to 1,200 penalty units, a statutory penalty of up to 100% of the avoided premium, and possible liability for the full cost of claims
Queensland Wages × industry rate. After 18 months, employers with wages up to $1.5 million move between 80% and 120% of the industry rate; above that, experience rating applies. Minimum $200 including GST and duty for policies starting before 1 October 2026, then $150 to 31 December 2026. Target average $1.343 per $100 of wages, held for a second year 2026 premium gazette Up to 500 penalty units (about $86,350 at the $172.70 unit value implied in WorkCover's guide). WorkCover recovers unpaid premium plus a 100% penalty, and compensation paid plus 50%.
WA Insurers set the price. WorkCover WA publishes recommended rates by industry; insurers may discount or load. You can ask for a review if your premium is at least 75% above the recommended rate. Recommended minimum $325. Average recommended rate 1.931% of wages (1.823% in 2025–26) WorkCover WA rates Fine of $10,000 per uninsured worker, plus up to 5 years of avoided premiums. Claim costs paid from the Default Insurance Fund become a debt you owe.
SA Industry rate × remuneration, then an experience discount or penalty based on your base premium band. Minimum $200 plus GST and WHS fee. Average 1.85% ReturnToWorkSA industry rates Up to $10,000 per worker for failing to register, and a fine of up to 3 times the premium that would have been payable
Tasmania Insurers set the price. The WorkCover Tasmania Board publishes suggested rates. Suggested average 2.18% of wages (2.06% in 2025–26) Suggested premium rates report Up to 500 penalty units, avoided premiums for up to 7 years, and recovery of claim costs paid by the Nominal Insurer
ACT Insurers set the price based on industry, claims history, wages and staff numbers. Premium notices show the Default Insurance Fund levy. No published average found WorkSafe ACT employers $7,500 on-the-spot fine; 50 penalty units ($40,500 for a corporation at $810 a unit), rising to 250; up to double the avoided premium for 5 years; 3 times any Default Insurance Fund payout
NT Approved insurers set rates and premiums. No published average found NT WorkSafe FAQs Up to 100 penalty units plus avoided premium for up to 2 years (NT WorkSafe's FAQ cites up to $179,000 for a company); claim costs and the highest premium for the uninsured period
Comcare Agency premium = prescribed rate × payroll Agency-specific Comcare premiums Not applicable

Rates and penalties as at October 2026. Queensland's rates exclude GST and duty; check how your scheme or insurer quotes them.

How is the premium calculated?

The base formula for workers comp insurance is the same everywhere:

Premium = wages for the year × your industry rate

Three things move it from there:

  • Your industry classification. Each scheme puts you in an industry class based on your main business activity. The rate reflects the claims of every employer in that class. A wrong classification can make a premium too high or too low.
  • What counts as wages. Schemes use a wide definition. NSW and Victoria include superannuation, and schemes commonly count bonuses, commissions and allowances. Each scheme publishes a wages or remuneration guide.
  • Your claims record. Small employers pay the industry rate. Once you pass a size threshold (an average performance premium above $30,000 in NSW, remuneration above $200,000 in Victoria, wages above $1.5 million in Queensland after 18 months), your own claims history raises or lowers the rate.

Apprentices get special treatment in some schemes. Queensland deducts apprentice wages from the premium, and NSW employers don't bear the premium cost for apprentices in designated trades, though their wages must still be declared.

Illustrative example: one payroll, three industries

These are invented businesses using real Queensland 2026–27 industry rates (per $100 of wages, excluding GST and duty, from the June 2026 gazette, checked 17 October 2026). Rates in other states differ.

Business Annual wages Industry rate Premium before GST and duty
Café $250,000 1.160 $250,000 ÷ 100 × 1.160 = $2,900
Carpentry business $250,000 7.449 $250,000 ÷ 100 × 7.449 = $18,622.50
Accounting practice $250,000 0.161 $250,000 ÷ 100 × 0.161 = $402.50
Accountant with one part-timer $40,000 0.161 $40,000 ÷ 100 × 0.161 = $64.40, so the minimum premium applies: $150 including GST and duty for a policy starting between 1 October and 31 December 2026

The same payroll costs 46 times more to insure for carpentry than for accounting. Check your classification before comparing your bill with anyone else's.

Declaring wages

You estimate wages when the policy starts and declare actual wages after the year ends. The schemes penalise errors:

  • NSW adds a 30% wage loading if actual wage declarations are outstanding. Giving false or misleading wage information can attract up to 100 penalty units.
  • Victoria can charge up to 120% of the premium difference for incorrect information, or up to 200% if it was intentional.
  • Queensland deems you uninsured if the premium is unpaid by 30 September.

Who counts as a worker?

This is where small businesses get caught. A person can hold an ABN and still be a worker for workers comp, which means you must declare what you pay them and your policy covers them. The test for workers comp isn't always the same as the test for tax or the Fair Work Act. Our employee vs contractor guide explains the general test.

State or territory Who is a worker, and which contractors are deemed workers
NSW Anyone under a contract of service or training contract, plus deemed workers in Schedule 1 of the 1998 Act (including labour-only and other contractors, outworkers, labour hire, salespeople and canvassers). icare's indicators include who supplies materials, set hours, fixed-price quotes, risk of profit or loss and liability for poor work. Where a contractor's payment isn't split, icare's default labour share is 100% for labour only, 90% for labour and tools, 80% for labour and plant.
Victoria Employees plus deemed workers. Sole-trader contractors are reviewed for direction, set hours, inability to delegate, time-based pay and use of your tools. Incorporated contractors may be deemed workers if they personally do at least 80% of the work, are paid mainly for labour and earn at least 80% of their income for that kind of work from you.
Queensland Someone who works under a contract and is an employee for ATO PAYG withholding purposes. Includes labour hire workers, sharefarmers, commission salespeople and unpaid interns. Excludes anyone with an ATO personal services business determination.
WA Employees, apprentices, and contractors whose work isn't part of a business they regularly carry on, who don't sublet, and who do part of the work personally if they employ others.
SA Contract of service, plus deemed workers in Schedule 1, which include building work, cleaning work, taxi driving and entertainers.
Tasmania Employees, plus contractors on contracts over $100 for work that isn't part of the contractor's regular trade, unless the contractor holds their own personal accident insurance.
ACT Employees, plus contractors unless they're paid to achieve a stated outcome, supply their own plant and equipment, and are liable to fix defective work, or hold a personal services business determination.
NT The ATO PAYG withholding employee test. Having an ABN "is not determinative".

If you're unsure, ask the regulator before the wage declaration is due. NSW and Victoria also publish contractor tools and guidance. Our hiring your first employee checklist covers the other obligations that start with a first hire.

Are sole traders, partners and company directors covered?

State or territory Sole traders and partners Company directors
NSW Not covered and can't cover themselves A director who does day-to-day work and receives any payment is a worker
Victoria Not workers of their own business A director of their own Pty Ltd paid salary or wages is a worker; directors' fees count as remuneration
Queensland Not covered by the accident policy. Can buy optional Workplace Personal Injury Insurance (minimum $1,650 a year including GST and duty, as at October 2026) Someone working for a company they direct is not a worker; personal injury insurance is the option
WA Generally can't cover themselves The company can choose to cover working directors; public company and non-working directors are excluded
SA Self-employed people can apply to ReturnToWorkSA for cover Directors paid under a contract of service are workers; fee-only directors are unlikely to be covered
Tasmania Not workers of their own business; we couldn't confirm a personal cover option on the regulator's site Working directors have generally been held to be workers
ACT Not workers Directors can't claim against the Default Insurance Fund
NT Not covered Covered only if PAYG is withheld and they're disclosed to the insurer

If workers comp can't cover you, look at personal accident and illness cover or income protection. Our sole trader insurance guide compares them, and sole trader vs company explains how your structure changes the picture.

What does a workers compensation policy pay?

The scheme pays the injured worker's entitlements, not your own losses. Amounts, step-downs and time limits are set by each state's law and indexed.

Benefit What it covers
Weekly payments Replacement income while the worker can't work, or can only work reduced hours. The Fair Work Ombudsman notes this is an insurance payment, not a wage.
Medical and related costs Reasonable medical, hospital, treatment and rehabilitation costs
Return to work support Rehabilitation providers and help to get back to suitable work
Permanent impairment A lump sum for lasting impairment above the scheme's threshold
Common law damages In some states a seriously injured worker can sue the employer, and the policy responds. For psychological injuries notified from 1 July 2026, NSW raised the impairment threshold for these damages.

It doesn't cover your own injury as a sole trader or partner, injuries to customers or the public, or damage to property, tools or vehicles.

The employer excess

You usually pay the first part of a claim yourself. Excess rules as at October 2026:

State or territory Employer excess
NSW For policies issued or renewed from 4pm on 30 June 2026: the weekly compensation for the first week of entitlement and the week after
Victoria The first 10 days of weekly payments plus the first $903 of medical costs (2026–27). You can buy it out for a 10% premium loading.
Queensland Pay the worker for the day of injury, plus an excess of the lesser of one week's Queensland ordinary time earnings or the worker's weekly compensation
SA The first 2 weeks of income support per worker per calendar year
ACT No standard excess, but if you don't notify your insurer within 48 hours you pay weekly compensation until you do
NT Any part day lost on the day of injury
WA and Tasmania No employer excess (Safe Work Australia's 2025 comparison)

While your worker is off on workers comp

The Fair Work Ombudsman's guidance covers the employment side:

  • Some awards require accident pay: you top up the difference between workers comp payments and normal pay.
  • Whether super is payable depends on the award or agreement.
  • Leave accrual depends on your state's workers compensation law.
  • Employees on workers comp aren't entitled to payment for public holidays under the Fair Work Act.
  • If you dismiss an employee who is away on workers comp, you must give written notice, and state laws may protect the worker. Queensland, for example, makes it an offence to dismiss a worker within 12 months solely or mainly because of the injury.
  • You must consult them about major workplace changes that affect their job, at the time the decision is made.

Check your modern award for accident pay.

What must you do when a worker is injured?

State or territory Report the injury or claim Return to work duties
NSW Notify your claims service provider within 48 hours of becoming aware. Keep a register of injuries. Every employer needs a return to work program within 12 months of becoming an employer, and smaller employers must appoint a person responsible for recovery at work. Larger employers need a coordinator.
Victoria Send claim documents to your agent within 10 calendar days (WorkSafe's checklist; Safe Work Australia's 2025 comparison lists 3 business days for mental injury claims). Notify WorkSafe immediately on 132 360 of serious incidents. Keep a register of injuries. Nominate a return to work coordinator, prepare a return to work plan and provide suitable employment for 52 weeks
Queensland Report immediately; it's an offence not to within 8 business days. Give new workers the required information statement. Assist rehabilitation. Larger employers, and some in high-risk industries, must appoint a rehabilitation and return to work coordinator within 6 months.
WA Give the worker's claim to your insurer within 7 days Establish an injury management system. Hold the worker's job open for a 12-month employment obligation period.
SA Give ReturnToWorkSA a copy of the injury notice within 5 business days, and forward claims within 5 business days Respond to a written request for suitable employment within one month. A coordinator is required once you employ 30 or more workers for 3 months.
Tasmania Notify your insurer within 3 working days; give the claim form to the insurer within 5 working days Return to work coordinator required above 100 workers
ACT Notify your insurer within 48 hours (confirm oral notice in writing within 3 days). Forward claims within 7 days. Keep a register of injuries. Coordinator required for self-insurers and employers paying $200,000 or more in premium
NT Forward a claim to your insurer within 3 working days Give a written return to work plan proposal within 7 days if incapacity will exceed 28 days

Workers comp vs public liability vs personal accident cover

Workers compensation Public liability Personal accident and illness
Who it protects Your workers, including deemed workers Customers, visitors and the public, and their property You, the owner
Compulsory? Yes, for employers (subject to state thresholds) Not generally, though contracts, leases and councils often require it No
What it pays Weekly payments, medical, rehabilitation, lump sums, some common law claims Compensation and legal costs when your business injures someone or damages their property A weekly benefit if injury or illness stops you working
Price basis Wages × industry rate set or recommended by the state Mostly your occupation, then turnover, staff numbers and claims record Set by the insurer; the benefit is usually a percentage of your income
Read more This guide Public liability insurance Sole trader insurance

Our business insurance overview explains how the covers fit together.

What changed in 2024 to 2026

Date State Change
31 March 2024 Victoria WorkCover Scheme Modernisation Act: tighter mental injury eligibility, and weekly payments beyond 130 weeks need 21% or more whole person impairment
1 July 2024 WA Workers Compensation and Injury Management Act 2023 replaced the old Act
2024 to 2025 Queensland 2024 amendments added the "regulated worker" limb to the worker definition and new employer offences (influencing a worker not to claim, failing to give the information statement). New regulation commenced 1 September 2025.
1 December 2024 SA One month to respond to a worker's written request for suitable employment
4 October 2025 ACT New Default Insurance Fund arrangements for "prescribed employers"
27 March 2026 onwards NSW Reform and Modernisation Act 2026: premium rate freeze for 2026–27 and 2027–28, new employer excess from 30 June 2026, narrower psychological injury eligibility from 1 July 2026, higher whole person impairment thresholds for psychological injury claims (25% from July 2026, 27% from July 2027, 28% from July 2029), and from 1 October 2026 a "reasonable and necessary" medical test and limits on employers attending medical appointments
2026–27 Several Queensland held its $1.343 average for a second year; WA's recommended average rose to 1.931%; Tasmania's suggested average rose to 2.18%; Victoria stayed at 1.8%; SA's average is 1.85%

New employer checklist

  • Check whether you must insure. Use the state table. If you're under the NSW, Victorian or SA threshold, diarise a review for when wages grow or you take on an apprentice.
  • Apply before the first shift. Queensland gives you 5 business days and SA 14 days, but NSW cover can't be backdated and an injury before cover starts is your problem.
  • Pick the right industry classification. Describe your main activity accurately and check the rate against your scheme's published table.
  • Estimate wages using your scheme's definition. Include super, bonuses and allowances where required.
  • List your contractors. Test each one against your state's deemed-worker rules and declare the labour component where needed.
  • Decide about directors and yourself. Cover working directors where your state allows or requires it, and arrange personal accident or income protection for anyone the scheme won't cover.
  • Keep the certificate of currency. Head contractors and clients often ask for it.
  • Set up the paperwork. A register of injuries, the Victorian "If you are injured" poster or Queensland's information statement for new workers, and a return to work program or injury management system.
  • Diarise deadlines. Wage declarations, renewal and payment dates (Queensland: declare by 31 August, unpaid by 30 September means uninsured; Victoria: 5% discount if paid by 17 August 2026).
  • Brief whoever runs the site. Injury reporting can be 48 hours, so supervisors need to know who to call.
  • Review when things change. New states, new activities, labour hire, apprentices or a big wage increase.

Workers comp premiums are generally a deductible business expense, according to the ATO. Fines for being uninsured are not. For the payroll side of a first hire, see Single Touch Payroll and new employee onboarding.

Key takeaways

  • Workers comp is compulsory in every state and territory. NSW and Victoria exempt employers paying $7,500 or less with no apprentices or trainees; SA's 2026–27 cut-off is $16,806; the rest require cover from the first worker.
  • NSW, Victoria, Queensland and SA run government schemes. In WA, Tasmania, the ACT and the NT you buy a policy from a licensed private insurer.
  • Your premium is wages, as your scheme defines them (often including super), times your industry rate. Published 2026–27 averages run from about 1.3% of wages in Queensland to 2.18% suggested in Tasmania.
  • An ABN doesn't make someone a contractor for workers comp. Each state has its own test, and many contractors are deemed workers you must declare.
  • Workers comp never covers a sole trader or partner. Directors are covered in some states and not others.
  • Report injuries fast: 48 hours in NSW and the ACT, 3 working days in Tasmania, 5 business days in SA, 7 days to pass a claim to your insurer in WA.

Where to get help

Continue through the business insurance guides.

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Frequently asked questions

Is workers compensation insurance compulsory in Australia?

Yes, for almost every employer. Each state and territory has its own law. In Queensland, WA, Tasmania, the ACT and the NT you need cover from your first worker. NSW and Victoria exempt employers paying $7,500 or less a year in wages with no apprentices or trainees, and SA exempts employers paying less than $16,806 in 2026–27. Exempt employers still have duties if a worker is injured, so check your regulator.

Do I need workers comp for one casual employee?

Usually yes. In Queensland, WA, Tasmania, the ACT and the NT the number of hours doesn't matter. In NSW and Victoria you need a policy once wages pass $7,500 in a year, or straight away if the casual is an apprentice or trainee. In SA you must register within 14 days once wages reach the $16,806 threshold for 2026–27. Count super and allowances if your state's wage definition includes them.

How much does workers compensation insurance cost?

Your premium is your wages multiplied by your industry's rate, plus adjustments. Published 2026–27 averages are 1.8% of remuneration in Victoria, $1.343 per $100 of wages in Queensland, 1.85% in SA, 1.931% recommended in WA and 2.18% suggested in Tasmania. NSW froze its rates at the 2025–26 level. Industry rates vary enormously: in Queensland, accounting is 0.161% and carpentry 7.449% (as at October 2026).

Do I need workers comp for contractors and subcontractors?

Sometimes. Every state has rules that treat some contractors as workers, so you must declare their labour payments and cover them. An ABN alone doesn't settle it. Queensland and the NT use the ATO's PAYG withholding employee test, Victoria uses an 80% personal-work and 80% income test for incorporated contractors, and the ACT treats contractors as workers unless they're paid for a result, supply their own equipment and fix their own defects.

Can a sole trader get workers compensation for themselves?

Generally no. Workers compensation covers your workers, and a sole trader or partner isn't a worker of their own business. Two exceptions: WorkCover Queensland sells optional Workplace Personal Injury Insurance to self-employed people (minimum premium $1,650 a year as at October 2026), and ReturnToWorkSA can extend cover to a self-employed person who applies. Elsewhere, look at personal accident and illness or income protection insurance.

Are company directors covered by workers compensation?

It depends on the state. In NSW and Victoria, a working director paid wages is generally a worker you must cover. In WA, a company can choose to cover working directors. In the NT, directors are covered only if PAYG is withheld and they're disclosed to the insurer. In Queensland, a person working for a company they direct is not a worker, but can buy WorkCover's optional personal injury cover.

What happens if I don't have workers compensation insurance?

Your injured worker is still paid through the scheme's safety net, and the regulator then recovers the claim costs from you, plus penalties. Examples: WA fines up to $10,000 per uninsured worker and recovers 5 years of avoided premiums; Queensland recovers unpaid premium plus 100% and claim costs plus 50%; Victoria's maximum is 1,200 penalty units, and you may have to repay claim costs. One serious injury can cost far more than years of premiums.

Which state's workers comp applies if an employee works in more than one state?

All states use the same "state of connection" tests. First, the state where the worker usually works in that employment. If that's unclear, the state where they are usually based. If still unclear, the state of your principal place of business in Australia. Cover that state, and tell your insurer about interstate work. A worker who works temporarily interstate usually stays covered by the home state's policy.

Is workers compensation insurance tax deductible?

Yes. The ATO lists workers compensation premiums among the insurance premiums a business can generally claim as an operating expense. Penalties and fines imposed for breaking an Australian law are not deductible, so a fine for being uninsured can't be claimed. Keep the premium notice and payment record with your tax records, and check timing with your tax agent if you pay in advance or by instalments.

How quickly must I report a workplace injury?

It depends on the state. NSW: notify your claims service provider within 48 hours. ACT: notify your insurer within 48 hours. Tasmania: within 3 working days. SA: give ReturnToWorkSA a copy of the injury notice within 5 business days. Queensland: report immediately, and it's an offence after 8 business days. WA: pass a claim to your insurer within 7 days. Victoria: send claim documents to your agent within 10 calendar days.

General information only. This guide doesn't take your personal or business circumstances into account and isn't financial, legal or tax advice. Rates and thresholds change — check the official sources linked in this guide and get qualified advice where your circumstances require it.