Workers’ compensation insurance. An essential thing for employers.
Workers' compensation insurance – known as WorkCover in some states – is compulsory in Australia if you employ people, but what you get and how much it costs will be different cost in each state and territory.
This means you multiply the amount you spend on remuneration by 1.47% to get a rough idea of your workers' comp premium.
However, the premium rate can vary depending on industry. The more dangerous the industry, the higher the premium rate. Your premium may also be impacted by your claims history.
Victoria
For 2022-2023, the average premium rate is 1.272%.
This means you multiply the amount you spend on remuneration by 1.272% to get a rough idea of your workers' comp premium.
However, the premium rate can vary depending on industry. The more dangerous the industry, the higher the premium rate. Your premium may also be impacted by your claims history.
Queensland
For 2022-2023, the average premium rate is 1.23%.
This means you multiply the amount you spend on remuneration by 1.23% to get a rough idea of your workers' comp premium (known in Queensland as WorkCover).
However, the premium rate can vary depending on industry. The more dangerous the industry, the higher the premium rate. Your premium may also be impacted by your claims history.
Western Australia
For 2022-2023, the average premium rate is 1.822%.
This means you multiply the amount you spend on remuneration by 1.822% to get a rough idea of your workers' comp premium.
However, the premium rate can vary depending on industry. The more dangerous the industry, the higher the premium rate.
Your premium may also be impacted by your claims history and even which insurer you choose. It's particularly important to compare prices if you live in WA.
South Australia
For 2022-2023, the average premium rate is 1.8%.
This means you multiply the amount you spend on remuneration by 1.8% to get a rough idea of your workers' comp premium.
However, the premium rate can vary depending on industry. The more dangerous the industry, the higher the premium rate. Your premium may also be impacted by your claims history.
Tasmania
For 2022-2023, the average premium rate is 2.08%.
This means you multiply the amount you spend on remuneration by 2.08% to get a rough idea of your workers' comp premium.
However, the premium rate can vary depending on industry. The more dangerous the industry, the higher the premium rate.
Your premium may also be impacted by your claims history and even which insurer you choose. It's particularly important to compare prices if you live in TAS.
Australian Capital Territory
For 2022-2023, the average premium rate is 2.33%.
This means you multiply the amount you spend on remuneration by 2.33% to get a rough idea of your workers' comp premium.
However, the premium rate can vary depending on industry. The more dangerous the industry, the higher the premium rate.
Your premium may also be impacted by your claims history and even which insurer you choose. It's particularly important to compare prices if you live in ACT.
Northern Territory
Each business is assigned a rate relative to the risk of their industry. Your gross annual spend on wages is then multiplied by this rate to get your premium.
However, your premium may also be impacted by claims history or even which insurer you choose.
An overview of workers' compensation across Australia
Choose the tab with your state to see who needs workers' compensation, whether you might be exempt, and where you can find more information.
Any employer in South Australia who pays $13,760 or more in wages for the 2022-23 financial year
Who doesn't need it
Employers who pay less than $13,760 in total for the 2020-21 financial year. (However, if your employee is injured at work, you must report the injury, register and pay the minimum premium.)
Self employed people with no employees or apprentices
Self-insured employers, usually very large companies
The number of serious workers' compensation claims in 2020-2021 was 130,195. Of these, 12,155 were for mental health conditions. 474 claims were for COVID. Read more statistics here.
What's covered by workers' compensation?
Workers' compensation claims are decided on a case by case basis and rules vary between states. Here's a general overview:
Covered
On-site breaks. Employees are generally covered if they're on-site
Off-site breaks. Employees are covered in NSW, VIC, QLD and NT. They're usually not covered in TAS though, although there are some exceptions. They're not covered at all in SA.
Commuting (ACT, QLD, NT). The ACT covers commutes without restrictions. QLD and NT are generally covered, but with limits.
Illnesses and injuries outside of work. Employees can still make claims for illnesses and injuries that happen outside the workplace, but they'll have to prove their employment was a main contributing factor.
Work-related travel. Employees are covered while undertaking work-related travel. Conditions are stricter in VIC than in other states.
Not Covered
Serious and wilful misconduct. This includes being under the influence of drugs or alcohol, committing a crime. However, death and serious injury benefits may still apply
Self-inflicted injuries. Employees can't make a claim for death, injury or illness that was self-inflicted.
Commuting (NSW, TAS, WA, SA, VIC). NSW and TAS are generally not covered, though there are exceptions. WA, SA and VIC employees are rarely covered at all.
False information. If the employee lied about pre-existing conditions, they may be excluded from making a related claim.
Get a quote for workers' compensation insurance
In Australia, there are 11 workers' compensation schemes. All 8 states or territories have their own one and there are 3 Commonwealth schemes. Find a quote below based on where your business operates.
Receive a Quote for Workers Compensation
If you are ready to speak with a consultant about different business insurance options available, simply enter your details in the form. Keep reading if you want to learn more about the different types of cover available.
Workers' compensation insurance is a type of insurance paid to employees if they get injured or sick as a result of their work. Payouts can cover an employee's wages, medical expenses and rehab. A lump sum payment can be made following permanent disablement.
Most employers must have a workers' comp policy in place. In Australia, the rules for this type of cover are fixed by states and territories.
The cost of workers' compensation can vary depending on the type of industry, history, size and more.
Industry. Employers in dangerous industries have to pay a higher rate
Payroll. The greater your payroll, the more you'll have to spend on workers' comp
Claims history. In some cases, a good claims history will be rewarded with discounts while employers with a bad claims history may face penalties
Company size. Larger companies may have different pricing models applied
The vast majority of employers in Australia will need workers' compensation insurance. That includes employers for business and non-business reasons.
NSW. Any employer who pays annual wages over $7,500
VIC. Any employer who pays annual wages over $7,500
QLD. All employers
WA. All employers
SA. Any employer who pays annual wages of $13,760 or more for the 2022-23 financial year
TAS. All employers
NT. All employers
If you have employees who work across multiple states, you should get workers' compensation for the state they are usually based in.
If that's not clear, you can continue through the following tests until you reach an answer.
Test
Key question
A
Where does the worker usually work?
B
Where is the worker usually based?
C
Where is the employer's principal place of business?
D
If the employee works on a ship, where was it most recently registered?
Yes, workers' compensation premiums are tax deductible, as long as you claim them in the same year. It can be written off as a revenue expense, just like business insurance.
Possibly, yes. The employee would have to prove that their job was the main contributing factor to contracting COVID-19 but it's certainly possible.
These jobs include those in the retail industry, healthcare sector, aged care facilities, public transport, hospitality, education, emergency services, construction, and cleaning.
You may need to provide:
General business details (such as your name, ABN and operating addresses)
The type of company you run
How many employees you have
Details on previous workers' comprehensive insurance
An estimate of your wage costs
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To make sure you get accurate and helpful information, this guide has been reviewed by Justine Mclean, a member of Finder's Editorial Review Board.
Alex Reid is Finder’s business insurance cadet. He has a Master of Marketing from the University of Technology Sydney, with a background in business and sales. When not writing about business insurance for Finder he's a keen scuba diver, recently completed his 200th hour underwater and his PADI Divemaster certification. Before working at Finder he lived in Hangzhou China, where he studied Mandarin and Chinese culture. See full bio
James Martin was the insurance editor at Finder. He has written on a range of insurance and finance topics for over 7 years. James often shares his insurance expertise as a media spokesperson and has appeared on Prime 7 News, WIN News, Insurance News, 7NEWS and The Guardian. He holds a Tier 1 General Insurance (General Advice) certification and a Tier 1 Generic Knowledge certification, both of which meet the requirements of ASIC Regulatory Guide 146 (RG146). See full bio
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James has written 204 Finder guides across topics including:
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I would like to get some comparison quotes for my organisations workers compensation insurance? NT based. Is this possible?
Finder
SarahNovember 19, 2024Finder
Hi Maree,
Only insurance companies approved by NT WorkSafe are able to sell employers in the Northern Territory a workers’ compensation insurance policy. In the section above called ‘Get a quote for workers’ compensation insurance’, you can hit the ‘get quote’ button to be connected with an approved insurer. Best of luck!
caroleJune 16, 2024
How much is workers compensation for a sole trader working part time and making $25,000
I am trying to get a quote for workers compensation. It is asking me about yearly payroll. We are a brand new company. How do I address this.
Finder
SarahDecember 14, 2023Finder
Hi Bobbie,
To work out how much you need to pay, you’ll need to declare your estimated wages for the current financial year. As you’re a new company, you’ll need to estimate what you project that might be. If you under or overestimated your wages for your first year, that will be worked out in your second year and the difference will be added or subtracted to adjust your premium for that year.
Hope this helps!
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I would like to get some comparison quotes for my organisations workers compensation insurance? NT based. Is this possible?
Hi Maree,
Only insurance companies approved by NT WorkSafe are able to sell employers in the Northern Territory a workers’ compensation insurance policy. In the section above called ‘Get a quote for workers’ compensation insurance’, you can hit the ‘get quote’ button to be connected with an approved insurer. Best of luck!
How much is workers compensation for a sole trader working part time and making $25,000
Hi Carole,
You can work this out using this government calculator. Best of luck!
I am trying to get a quote for workers compensation. It is asking me about yearly payroll. We are a brand new company. How do I address this.
Hi Bobbie,
To work out how much you need to pay, you’ll need to declare your estimated wages for the current financial year. As you’re a new company, you’ll need to estimate what you project that might be. If you under or overestimated your wages for your first year, that will be worked out in your second year and the difference will be added or subtracted to adjust your premium for that year.
Hope this helps!