Understanding Workers' Compensation Insurance in Australia
Workers’ compensation is a mandatory statutory insurance for all employers across every state and territory in Australia. It is designed to protect employees if they sustain a work-related injury or develop an occupational disease.
Any business that hires workers—whether full-time, part-time, or casual, and whether under a written or verbal contract, including apprenticeships—must have workers’ compensation insurance covering all its employees.
Rules regarding domestic workers vary between schemes and can be verified on the relevant scheme regulator’s website in each state.
If one of your workers experiences a workplace injury or illness, the workers’ compensation scheme may offer various supports. These typically include weekly income benefits, medical and hospital treatment costs, rehabilitation services, coverage for certain personal items, and lump sum compensation for permanent disabilities, all in line with the specific rules of the state scheme.
Each Australian state government oversees its own workers’ compensation scheme, which is administered differently depending on the location. For example, in Western Australia, Tasmania, Northern Territory, and the Australian Capital Territory, private insurers underwrite the scheme. In contrast, New South Wales, Victoria, and South Australia have insurers acting as agents on behalf of government authorities. Queensland’s scheme is entirely government-operated.
For detailed information about workers’ compensation in your area, visit your state or territory’s official website:
How Are Premiums Calculated?
The cost of workers’ compensation insurance premiums is regulated by each state government and is determined by a formula unique to that jurisdiction. Typically, premiums are calculated based on your total employee wages, the industry sector your business operates in, and your business’s claims history.
