Workers compensation insurance

Who needs worker's compensation insurance in VIC?

Generally, if you employ workers in Victoria then you'll need to register for 'WorkSafe'.

Workers compensation benefits in Victoria

• Weekly benefit payments. An injured worker's weekly payable benefits are based on their pre-injury average weekly earnings (PIAWE). This is their average weekly income for the last 52 weeks, or since they started if they've been working there for less than a year. PIAWE includes base pay, overtime, commissions and other income, but not all bonuses and benefits.
• Medical and rehabilitation costs. Victorian workers compensation can pay the cost of reasonable medical treatments and related services. You can find a full list of approved treatments here, and a breakdown of costs covered per treatment. Injured workers may choose their doctor or hospital as long as it meets required standards.
• Permanent impairment. Impairment benefits are a one-off, lump sum payment that can be claimed in addition to other benefits, even if the injured worker has already returned to the job. A worker who has suffered permanent impairment resulting from a workplace injury or related illness may claim these benefits following an independent impairment assessment. This assessment will give an injured worker a disability score based on their injuries, which is then used to calculate the benefits payable.
• Death benefits. In the event of a workplace death, workers compensation can cover related medical services such as ambulance, burial expenses, family counselling services, lump sum benefit and weekly pensions for dependents as well as additional damages.
• Claimable damages. In some circumstances, an injured worker may have the right to sue their employer for additional damages. Specific steps must be followed and you should seek legal advice before doing this.

How are premiums determined?

If you pay less than $200,000 per year in annual rateable remuneration, your premiums are based on a combination of:

• Industry classification. The premium rates in your industry according to this list. Look for 'industry rate'.
• Rateable remuneration. How much you pay your workers in a given year

If you pay more than $200,000 per year, your premiums are based on a combination of industry classification, rateable remuneration and claims experience. Claims experience refers to how many claims you have made recently and how this compares to other businesses in the same industry classification. A better claims experience generally means you have a safer workplace, relative to the industry standard, and can get lower premiums.

Who provides workers compensation insurance in Victoria

VIC workers compensation is a state-managed scheme, which means you will get the same rates from each provider. There are five approved workers compensation insurers and you do not need to shop around for the cheapest workers compensation policy in VIC.

For a quick estimate of your upcoming premiums, you can use WorkSafe Victoria's online calculator tools or you can quickly see rates across industries here.

Some exemptions to the rule

There are a few types of situations which won't need to take out workers compensation.

• Your company has no apprentices.
• Your company pays less than $7,500 out in salary
• Sole traders, individuals in partnerships and individual trustees in trusts

What are my obligations as an employer in VIC?

When you sign up for WorkSafe in Victoria, you will be provided with a username and password which can be used to login to Online Employer Services. This is a centralised place for you to manage your policy and make sure you're meeting your obligations.

In addition to holding appropriate workers compensation cover and paying the premiums, there are other obligations to meet. Many of these can be handled online through Online Employer Services.

• Keep WorkSafe VIC up to date
• Maintain a safe working environment
• Display the "if you are injured at work" poster
• Have official procedures in place
• Report incidents
• Keep records

Who needs workers compensation in Queensland?

All employers in Queensland are required to hold a workers compensation insurance policy for their workers. In QLD, this is often known as accident insurance. There are no remuneration thresholds to meet. If someone qualifies as a worker you must cover them, regardless of how much they are paid.

A worker can be defined as anyone who a business employs who are not contractors or self-employed or owners of the business. Most employees will naturally fall into this category. Contractors don't count as employees and do not require cover.

Queensland workers compensation benefits

• Weekly compensation payments. If an injury requires a worker to take time off or cut back their hours, they may be entitled to benefits for loss of income. Whether this is necessary will be included on the injured worker's work capacity doctor's certificate. Weekly benefits will depend on the length of time someone is certified as being unfit for work, when the injury occurred and other specifics of the situation.
• Medical and rehabilitation costs. Once a claim has been accepted, WorkCover QLD may pay reasonable medical and rehabilitation expenses relating to a claim. There are set fee lists for medical services, much like with Medicare. You can find the set fees for essential medical treatments here, and the set fees for allied healthcare services, such as physiotherapy, here. If you use a provider who charges more than the fees listed on those pages, you will be responsible for paying the difference.
• Travel and other expenses. Necessary and reasonable travel costs, including for medical treatments and medical assessments are covered by QLD workers compensation. Travel for one-way trips less than 20km away or where there is a closer option available is not covered.
• Lump sum permanent impairment payments. If an injured worker has permanent impairment as a result of a workplace injury they may be entitled to lump sum compensation. Impairment can generally be distinguished by the permanent loss of efficient use of a specific body part, or of a general part of the body.
• Death benefits. Dependents of a deceased worker may claim lump sum or quarterly benefit payments, as well as reasonable funeral expenses. The requirements can be complex and WorkCover QLD encourages claiming dependents to call 1300 362 128 for a clear idea of what is required.
• Common law damages. When an injured worker sues their employer for damages, WorkCover QLD represents the employer and can pay the damages, including past and future loss of income, medical treatments, pain and suffering and legal costs.

How are workers compensation rates calculated in QLD?

Accident insurance workers compensation premiums are calculated based on:

1. The size of your business
2. Your industry
3. Your claims history (if any)

For businesses who pay $1.5 million or less in wages:

Businesses are assigned a rating from 1 to 5 based on their claims experience relative to the industry standard - a safer than usual workplace will lead to better ratings.

These ratings directly affect your premiums, getting you either a discount or a surcharge on the industry standard rates.

For businesses who pay more than $1.5 million in wages

Accident insurance premiums for these companies are calculated with an experience based rating (EBR). This determines your premiums based on a combination of:

• Claims regardless of fault (statutory claims). This is known as statutory claims. It refers against you in the last three years, when an injured worker claims no-fault benefits after an injury
• Any common law workers compensation claims made against you in the last four years, when an injured worker sues for at-fault benefits, alleging their employer is at least partly liable for the accident
• Your business size relative to the size of your industry, as determined by wages

Types of workers compensation insurance in Queensland

Workers compensation in Queensland is managed by the state government. Although you cannot shop around for different insurers, you are able to choose from several different policy types (depending on who it's for).

Who needs workers compensation in Western Australia?

In Western Australia, employers are required to take out workers compensation policies to protect anyone who's considered a 'worker'. A worker can include:

• Full time workers on wage or salary
• Casual, part-time and seasonal workers
• Workers paid on commission
• Piece workers
• Contractors (in some cases)

What benefits are covered?

• Compensation for loss of earnings. Depending on the nature of the injured worker's employment and other factors, they may be entitled to varying weekly benefit payments to compensate them for loss of earnings.
• Medical benefits. Much like Medicare, WA workers compensation can pay set medical benefits. These are readjusted annually. Workers compensation in WA does not necessarily pay the full cost of required medical treatments. You may be left with out-of-pocket expenses if your practitioner costs more than the medical benefits payable. The limits are generally reasonable enough to ensure effective treatment, however. Approved therapies and rehabilitations, such as physiotherapy and specialist treatments, are covered.
• Workplace rehabilitation. If a workplace requires modifications, or an injured worker requires assistance to return to the job, workplace rehabilitation benefits may help cover the costs.
• Travel expenses. Reasonable travel expenses can be claimed for trips to and from medical and rehabilitation facilities. Injured workers who live in regional areas may also claim accommodation and reasonable meal expenses.
• Permanent impairment. Other benefits, including lump sum and ongoing compensation payments, may be awarded to permanently disabled or impaired workers. Compensation can be awarded for both physical and psychological injuries.

Workers compensation rates in WA

Insurers in WA are free to set their own premiums in line with the WA industry premium rates. These costs are determined by the chance of injury faced by workers in different industries. Workers compensation rates are also affected by factors including, but not limited to, your total annual remuneration paid to all workers and your previous workplace safety and claims history. Insurers may charge up to a 75% surcharge based on your risk profile, or more with special approval.

• Predicted wages. At the start of each policy period, you predict your wages paid and premiums are adjusted based on actual wages paid at the end of each policy period. The difference needs to be paid to you or the insurer as applicable.
• What counts as wages? Wages include all salaries, commissions, bonuses, overtime, allowances and other pre-tax benefits paid to workers. It does not include termination, retirement and retrenchment payments, pensions or compulsory superannuation contributions.
• I disagree with my premium rates. If you disagree with the premium rates set by your insurer, you can appeal within one month of being informed of them. You are still required to keep paying premiums even if you intend to appeal, and if successful can get the difference refunded.

Approved insurers for Workers Compensation in WA

What are my obligations as an employer in Western Australia?

In the event of a workplace injury, ensure the worker immediately receives appropriate first aid and that the incident is reported to your insurer.

Other obligations you may have include;

• Maintain written systems
• Pass claims onto your insurer
• Work with your insurer
• Consider using a broker

Unlike in other states, insurers in WA are not necessarily obligated to provide additional services or assistance other than paying claims, making settlements and handling similar issues. Instead, this is left to specialised insurance brokers.

Who needs workers compensation insurance in Tasmania?

All employers in Tasmania must hold workers compensation policies to cover their workers. A worker is defined as anyone who works under a contract of service or training agreement, whether full-time, part-time or casual, and whether that contract is explicit, oral, written or merely implied. The only exception are large, financially secure companies who may apply to be a self-insurer instead.

Generally, you can assume that all workers need workers compensation cover, with the exception of contractors and excluded workers. Deemed workers, meanwhile, are special exceptions where an employee will need cover even if they don't meet the definition of a worker.

Workers compensation benefits in Tasmania

There are three different types of benefits available to injured workers in Tasmania.

• Statutory benefits. "No fault" payouts for all eligible injured workers. The employee is not required to prove an employer's negligence or fault in order to claim these. An injured worker can claim both common law damages and statutory benefits, although their common law payout will typically be reduced according to statutory benefits already claimed. You might consider statutory benefits to be the "core" of workers compensation cover. All benefits listed in the sections below are statutory benefits.
• Common law damages. These may be payable only when an employer has been found at fault for a workplace injury or illness. Only injured workers suffering more than 20% impairment may pursue common law damages, and proceedings must be commenced shortly after the injury.
• Settlements. The agreement reached between the injured worker, the employer and their insurer. They take the form of a single lump sum payout, and are meant to include the cost of future medical expenses, loss of income, rehabilitation needs and anything else. After a settlement has been reached, the employer can no longer make any further workers compensation claims for that injury.

Tasmanian workers compensation rates

The proposed average workers compensation premium rates for 2016/2017 is 2.25% of wages, meaning that employers will on average pay 2.25% of what they're paying in total wages as workers compensation premiums. Your rates may be higher or lower than this depending on your industry.

Workers compensation in Tasmania is market-driven, and workers compensation rates are generally set in three stages:

1. Risk premium. A "base" rate is established for each year based on the expected cost of claims relative to wages paid across the state in the coming year. This base rate is broadly intended to cover insurer costs, including time spent processing claims and managing policies.
2. Individual industry rates. Your business's rates are increased, or potentially decreased, according to your industry risk levels and your claims history relative to other companies in similar industries. In other words, more dangerous industries may face higher premiums, but safer than average workplaces in any industry can get lower premiums.
3. Gross premium. Rates are adjusted by insurers to ensure an acceptable risk level and an appropriate profit margin.

Your premiums may vary between insurers, and finding the cheapest Tasmanian workers compensation policy is largely a matter of getting quotes from each insurer.

Options for workers compensation insurance in TAS

Who doesn't need workers compensation in TAS?

Contractors do not count as workers in Tasmania, and you are not required to provide workers compensation cover for themThe only exception is when they do not hold a personal accident insurance policy and you have hired them to perform work not related to their usual area and worth more than $100, such as hiring an accountant to do $101 of gardening work.

Other excluded workers include;

• Workers employed on a casual basis for purposes other than the employer's trade or business
• Outworkers
• Domestic workers with private families who have done less than 48 hours of work prior to being injured
• Crew members of a fishing boat who are paid mostly or entirely with a share of the profits from the boat's gross earnings
• Unemployment work participation programs

Your obligations as an employer

In Tasmania's workers compensation scheme, employers are liable for initial statutory benefit costs, and may be liable for common law damages. These liability costs are some of the key expenses covered by workers compensation insurance policies.

As an employer, you are required to start paying statutory benefits almost immediately after a valid claim. For example, you will need to begin paying statutory weekly disability payments if a worker has been medically assessed as disabled, whether permanently or temporarily, but are not required to if they have not been medically assessed as disabled.

Employers are also required to take a range of steps to ensure injured workers are able to get back to the job as soon as reasonably able by:

• Making a positive contribution to an injured worker's recovery and wellbeing
• Providing alternative duties to an injured worker where reasonably possible

Who needs workers compensation in the ACT?

All employers in the ACT are required to purchase workers compensation policies to cover their workers.

• An employer is anyone who employs workers under a contract of service, regardless of whether it's written, oral or implied. It is possible that you, as an employer, have entered into a contract of service without even knowing it. Any registered Pty Ltd company is an employer as long as it has a single worker, even if it's dormant or not earning any income.
• A worker is anyone who performs a job under a contract of service, and personally carries out any part of that job, regardless of whether or not they are paid or earning any form of remuneration.
• A contractor may or may not qualify as a worker, depending on the situation and the nature of their employment.

Workers compensation benefits in Canberra and the ACT

• Weekly benefit payments. Injured workers are eligible for ongoing weekly benefit payments in line with their earnings before the accident.

For the first 26 weeks after injury, a worker can receive weekly benefits equal to their average pre-injury weekly earnings. Where there was a clear pattern of overtime or other additional employment, this is also factored into the amount received. After 26 weeks, benefit payments cease, and different procedures begin to apply.

• Partial incapacity. When an injured worker recommences duties, but due to partial disability is earning less than they were before the injury, they are paid the full difference for up to 26 weeks after the date of injury.
  After 26 weeks they will be paid a partial difference based on how many hours they're working per week post-injury compared to pre-injury, and how much they're earning. Generally, an injured worker will receive at least the minimum wage from their combined work pay and benefits.
• Medical and other expenses. An injured worker can claim any required medical treatment, plus related expenses such as accommodation and travel, and lost wages from time spent receiving treatment. They can also claim clothing or belongings that were damaged or lost as a result of the accident.
  Although a worker is entitled to claim the full amount of any of the above costs, the insurer will consider each claim individually, and may accept some and reject others.
• Permanent injuries. Injured workers may claim up to a maximum of $150,000 for permanent injuries, but only in certain circumstances.
• Death. Funeral and compensation benefits are payable as a lump sum in the event of a workplace death. Benefits will be reduced if other compensation payments for the same accident have already been paid.

How do insurers set workers compensation rates?

Each insurer uses very similar criteria when setting premiums, but may interpret them in different ways, leading to differences in cost. Factors considered by insurers include, but are not limited to:

• Your industry type
• Your business' claims and workplace safety history
• How many workers you have
• Charges in commissions and brokerage fees
• The current default insurance fund levy

What is the default insurance fund levy (DIFL)?

The DIFL is an extra cost added to workers compensation rates in the Australian Capital Territory. It is designed to cover the cost of claims made by people who were injured on the job when their employer didn't have workers compensation or were bankrupt. It is regularly reassessed and insurers are required to include the current DIFL rate in their premium statements. You can see how much you're paying in DIFL by looking at your insurance statements.

Which insurers offer workers compensation in the ACT?

There are seven licensed workers' compensation insurance providers in the ACT. If you need a workers' compensation policy, and your business is not eligible as a self-insurer, you must choose one of the following insurers.

Workers compensation obligations for employers in the ACT

Employer obligations include the following;

• Hold a current workers compensation policy for all employees in the territory
• Comply with the injury management program set out by your chosen insurer
• Establish and display a written return-to-work program in consultation with your workers, your insurer, an approved rehabilitation provider and any relevant unions
• Clearly display a notice that outlines the name of your insurer and policy details, and the requirements for making workers compensation claims
• Provide six-monthly wage reports to your insurer as well as any other specific information they require
• Make a register of previous injuries that occurred in your workplace available to your employees, regardless of whether or not they resulted in a claim. This register should include the names of all relevant businesses and individuals involved, as well as details about the accident, treatment given, names of any witnesses, and the name of the person registering the injury.
• You must notify your insurer of any workplace injury within 48 hours of it occurring, and receive written confirmation from them that you have done so. Failure to do so may incur penalties.