Workers compensation help from licensed Australian brokers

How the schemes differ

The obligation to cover your workers exists everywhere, but the mechanics change at the border. If you employ across more than one state, you generally need an arrangement in each, and the definition of who counts as a worker is not identical between them.

• New South Wales: icare administers the Nominal Insurer scheme, with agents handling policies
• Victoria: WorkSafe Victoria, through appointed agents
• Queensland: WorkCover Queensland, with self insurance available to some employers
• South Australia: ReturnToWork SA
• Western Australia: cover arranged with licensed private insurers, regulated by WorkCover WA
• Tasmania, Northern Territory and the ACT: cover arranged with licensed private insurers

How premiums are calculated

Most schemes start with your industry classification and your wages, then adjust for your own claims experience once the business is large enough for that to be statistically meaningful. Smaller employers are generally rated on the industry rate alone. The industry classification is worth checking, because businesses are sometimes coded to a higher risk category than their actual activity warrants, and correcting it can produce a lasting saving. Wages declarations also need to be accurate, since most schemes reconcile at the end of the period.

Claims management moves the premium more than shopping around

Because experience rating drives premium in most schemes, how you handle an injury has a direct financial effect for years afterwards. Early notification, genuine return to work planning and suitable duties all reduce claim cost, and the schemes are built around getting people back to work rather than simply paying compensation. Employers who treat claims management as an afterthought usually pay for it at the next few renewals. A broker who understands your scheme can help with the process, not just the paperwork.

Who is not covered, and what fills the gap

Sole traders, partners in a partnership and some working directors are generally not workers of their own business and cannot be covered by the scheme, though the rules differ by state. That means the person the business most depends on often has no income protection at all if they are injured. Personal accident and illness cover is the usual answer. Contractors are a separate question, and whether a contractor is a deemed worker for scheme purposes depends on the arrangement rather than on what the invoice says.