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Workers compensation in NSW

Your complete guide to workers compensation in New South Wales

In New South Wales, any Persons Conducting a Business or Undertaking (PCBU) are required to purchase workers compensation policies to protect their workers.

Common questions our users in New South Wales have

Who are considered workers?

If a worker is injured on the job, a workers compensation policy can pay them benefits. Workers can be:

  • Employees
  • Trainees
  • Apprentices
  • Work experience students

Who offers workers compensation in New South Wales?

There are six authorised general workers compensation insurers in NSW to choose from, and another five that only offer specialised cover for certain industries.

NSW InsurersGeneral or specialised?
Employers Mutual NSW LimitedGeneral
Catholic Church InsurancesGeneral
Coal Mines Insurance Pty LtdCoal industry specialist
Guild Insurance LimitedRegistered pharmacy specialist
Hospitality Employers Mutual LimitedHospitality industry specialist
Racing NSWThoroughbred racing industry specialist
StateCover Mutual LimitedWorkers compensation for NSW councils and local government entities

How much does it cost?

Workers compensation premiums in NSW are determined by a set formula. An insurer will take your industry classification rate then multiply it by how much your business pays in wages. This is known as the average performance premium.

Get a quote for workers insurance

Should I use a specialised insurer?

If you're in one of the specialised industries listed above you should consider a specialised insurer. You are not required to, but it is strongly recommended.

What other types of insurance should my business consider?

PCBU's vs Workers

This section will help you understand whether or not you are a PCBU or a worker.

Am I a PCBU or worker?

It is generally safe to assume that anyone who works on your behalf counts as a worker, unless they are an outside contractor or are otherwise exempt.

PCBU: Any individual, association or partnership that employs a worker. You are not a PCBU if:

  • You are engaged solely as a worker or officer
  • You are an elected member of a local authority, including residential strata body corporate
  • Your organisation is strictly a volunteer group

An officer is someone who has decision-making power in an organisation, but is not in any way responsible for carrying them out. Some corporate board members, for example, might not be PCBUs because they are officers.

Worker: Anyone who carries out work for a PCBU. Some employees, such as salespeople, who might not generally meet the required definition are considered workers as well.

  • Contractors do not count as workers, except to their own employers if applicable.
  • Volunteers and unpaid work experience students are not workers.

Some people may qualify as both PCBUs and workers. This means you are required to purchase a workers compensation policy, but are also covered by it.

If you are not sure whether or not you qualify as a PCBU, or if your employees qualify as workers, call 13 10 50 for more information.

Is work cover the same as income protection?

Workers compensation exemptions and discounts

Discounts and exemptions apply for certain PCBUs. These are explained below.

Exemptions: Certain businesses may be exempt from needing to purchase workers compensation.

  • You are not required to purchase workers compensation if you pay less than $7,500 in annual wages. You are still required to call WorkCover NSW on 13 10 50 and inform them of injuries, and will need to pay a $175 fee for each workplace injury claim made against you.
  • Large and consistently profitable companies, able to pay workers compensation benefits out of their own resources and maintain a high standard of workplace safety, may apply to be a self-insurer.

Discounts and incentives: To help shape workplace safety in NSW, the state government offers discounts and incentives.

  • No excess payment. Inform your chosen workers compensation insurance agent of a workplace injury within five days of you becoming aware of it, and you don’t need to pay a claims excess.
  • Discounts for apprentices. If you employ an apprentice and have a valid workers compensation policy, you are entitled to a discount based on how much you pay them. Your insurance agent will calculate this on a case-by-case basis, according to information you provide.
  • Safety incentives. There is a range of workplace safety incentives available, from 5% to 15% off, depending on the size of your business and what kind of safety record you have. Having zero workplace injuries in the most recent policy period will entitle you to a discount, as will having only minor injuries from which workers were able to quickly recover.
  • Discounts for premiums paid in full. If your workers compensation policy premiums are paid on time and in full, and are more than $175 per policy period (the minimum in all cases), you are entitled to a discount. This discount is subject to change, but as of November 2016 is 3–5%

NSW workers compensation rates

The cost of workers’ compensation is calculated individually based on a variety of factors including:

  • Your industry
  • How much your workers are paid
  • Applicable incentives and discounts
  • The costs of claims made by your workers (for medium and large sized businesses only)

There have been no significant changes to the NSW average workers compensation premium rates in recent years (from 2015 onwards).

If you know you require a workers compensation policy, your chosen insurance agent can calculate your exact premiums. These will generally be the same, regardless of which insurer you choose.

Until you have chosen an agent and received a personalised quote, the calculator above is the most accurate way of estimating your expected premiums. These will be the same for all general workers compensation insurance agents in NSW.

Workers compensation benefits in NSW

In NSW, injured workers are typically limited to claiming damages for loss of earnings, loss of future earning capacity and direct damages resulting from an accident. If an injury is the result of negligence on their employer’s part, they may sue for additional compensation.

Other than this they are generally only entitled to:

Weekly payments for loss of income: These benefits are dependent on the injured party’s ability to work.

  • They are only available for up to 130 weeks, unless the injured worker has been medically assessed as still unable to work after this time.
  • Benefit payments will stop after 260 weeks (five years) unless the worker has been assessed as having more than 20% permanent impairment and being unable to work at this time.
  • Injured workers may continue to claim weekly compensation payments past these cutoff points if they are assessed as being partially disabled, but with some ability to work, and are working for 15 hours or more per week and earning at least $183 per week.

Medical, hospital and rehabilitation costs: Emergency medical treatment and ongoing needs are covered by workers compensation.

  • Treatments are required to be carried out by approved practitioners.
  • All medications are covered if they have been prescribed by the treating doctor within one month of the injury. Only medications covered under the Medicare pharmaceutical benefits scheme are covered more than a month later.
  • Rehabilitation expenses will typically require a referral from an approved medical practitioner and will need to meet specific requirements.

Return to work assistance: Benefits are available to help injured workers find a new job if they are unable to return to their previous one. If an injured worker has a written offer of employment for three months or more they may claim a cumulative total of $1,000 for:

  • Education and training
  • Transport, childcare and other necessities
  • Required clothing and equipment

Property damage: Injured workers can claim up to $600 for clothing damaged in a workplace accident, or up to $2,000 for damage to artificial aids including:

  • False teeth or eyes
  • Crutches and artificial limbs
  • Glasses and vision aids

Death and family support benefits: Dependents of workers who have died or been seriously injured in a workplace accident may be eligible for:

  • Grief counselling and support
  • Funeral expenses and financial assistance

Your obligations as an employer

As an employer, or relevant PCBU, you must:

  • Have workers compensation insurance
  • Have a written and documented return to work program outlining the steps you will take if a worker is injured. Your insurance agent can assist you with this
  • Notify your insurer of injuries within 48 hours
  • Provide suitable, paid, equivalent work for injured employees that are still able to perform relevant tasks, as far as is reasonably practicable

You cannot dismiss a worker because of a work-related injury within six months of them becoming unfit for the job as a result of injury.

What else should I know about NSW workers compensation?

Note: Note: The information in this guide may not be accurate for workers compensation arrangements or claims made prior to 2012.

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6 Responses

  1. Default Gravatar
    MikeJuly 12, 2017

    hi, do you know if workers compensation insurance should pay the partner of injured worker for his lost work hours caring the injured and transporting to see doctors. thanks.

    • Default Gravatar
      ArnoldJuly 12, 2017

      Hi Mike,

      Thanks for your inquiry.

      Workers’ compensation is a form of insurance payment to employees if they are injured at work or become sick due to their work. Workers’ compensation includes payments to employees to cover their: wages while they’re not fit for work. medical expenses and rehabilitation.

      Workers’ comp does pay hospital and medical expenses that are necessary to diagnose and treat your injury. But it also provides disability payments while you are unable to work (typically, about two-thirds of your regular salary), and may pay for rehabilitation, retraining, and other benefits as well.

      Regarding cover for your partner, it will ultimately depend on the agreement between you and your employer.

      Hope this information helped.


  2. Default Gravatar
    NicholasJune 26, 2017

    Where do I find the latest “Insurance Premiums Order 2017-2018”?

    • Default Gravatar
      JonathanJune 27, 2017

      Hi Nicholas!

      Commencement of the Regulation is usually at 4PM of June 30th, and is required to be published on NSW Legislation website.

      Hope this helps.


  3. Default Gravatar
    chrisJune 5, 2017

    We have a small cleaning company and are both serving as directors. As such we don’t take wage however we do take drawings as directors. Do we need insurance? Thanks.

    • Default Gravatar
      JonathanJune 6, 2017

      Hi Chris!

      Thanks for the comment. Before applying for a Workers’ Compensation Insurance, it is important to properly identify which ones in your organization belong to PCBU or worker category.

      If you’re uncertain, you may call WorkCover NSW on 13 10 50 for further assistance.

      Hope this helps.


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