WorkCover (or workers' compensation) is a mandatory insurance system in Australia that protects both employers and employees.
If one of your workers is injured at work or suffers a work-related illness, WorkCover covers their medical expenses, rehabilitation, and lost wages — and protects you from being sued directly.
Each state and territory has its own scheme. This guide covers the general principles and state-specific variations you must know.
1. Do You Legally Need WorkCover Insurance?
In every Australian jurisdiction, workers' compensation insurance is compulsory if you employ workers under a contract of service (excluding independent contractors who operate their own businesses).
- Thresholds vary: Some states require coverage even for one employee (e.g., NSW, Victoria, QLD). Others have exemptions for very small wages (e.g., WA exempts employers paying less than $7,500/year in wages).
- Exemptions: Sole traders with no employees, certain family members (spouse, children living at home), and volunteers are generally not covered (but you can choose to cover them).
Critical: Even one part-time employee or casual worker triggers the obligation in most states. Ignorance is not a defense — penalties apply.
2. State-by-State Scheme Names & Regulators
You must register with the correct agency in the state where your employee works (not where your head office is located).
- New South Wales: icare (formerly WorkCover NSW) — compulsory from first employee.
- Victoria: WorkSafe Victoria — compulsory from first employee.
- Queensland: WorkCover Queensland — compulsory if you pay more than $500,000 in wages (small businesses can self-insure but rarely do; most opt in voluntarily).
- Western Australia: WorkCover WA — compulsory if wages exceed $7,500/year.
- South Australia: ReturnToWorkSA — compulsory from first employee.
- Tasmania: WorkCover Tasmania — compulsory from first employee.
- Australian Capital Territory: WorkSafe ACT — compulsory from first employee.
- Northern Territory: NT WorkSafe — compulsory from first employee.
3. How Premiums Are Calculated
Your WorkCover premium is based on:
- Your total wages (including super, bonuses, and most allowances).
- Your industry's claims rate (a 'manual rate' set by the regulator).
- Your business's claims history (a 'experience rating' — more claims increase your premium).
Most schemes require you to estimate your wage bill for the coming year, pay quarterly or annually, then reconcile after year-end.
Premiums typically range from 0.5% to 5% of wages.
4. What to Do Immediately After a Workplace Injury
You must follow a legal process to maintain compliance and avoid fines:
- Provide first aid and ensure the worker gets medical attention.
- Record the injury in a Register of Injuries (mandatory in all states for any injury requiring medical treatment or lost time).
- Notify your insurer within 48 hours (for serious injuries like hospitalisation, fractures, or amputations). For minor injuries, typical reporting period is 7-30 days depending on state.
- Lodge a claim form (the worker signs a claim form, and you provide employer details).
- Cooperate with return-to-work planning — offer suitable duties (light duties) as per medical certificates.
- A written WHS policy (for businesses with 20+ employees).
- Regular risk assessments (identify hazards, implement controls).
- Induction training for all new employees covering emergency procedures and hazard reporting.
- Return-to-work coordinator (in NSW and Victoria, mandatory if you employ more than 20 or 50 workers respectively).
- Fines exceeding $50,000 for corporations and $10,000 for individuals.
- Personal liability for directors (the company's separate legal status does not protect them).
- Being sued directly by an injured worker for common law damages (normally prohibited under the scheme).
- Identify the correct state regulator (see list above).
- Register online for a WorkCover account (most have simple web portals).
- Obtain a certificate of currency (proof of insurance) — keep it on display or accessible.
- Educate all employees about how to report injuries and access claim forms.
- Review your policy annually when your premium renewal arrives.
Warning: Failing to notify a serious injury can result in fines of up to $50,000 in some states and potential jail time for company officers.
5. Your Obligations to Prevent Injuries
WorkCover is linked to workplace health and safety (WHS) laws. You must have:
6. Penalties for Non-Compliance
Operating without WorkCover insurance is a serious offence. Penalties include: