Workers’ compensation insurance. An essential thing for employers.
Workers' compensation insurance – known as WorkCover in some states – is compulsory in Australia if you employ people, but what you get and how much it costs will be different cost in each state and territory.
This means you multiply the amount you spend on remuneration by 1.73% to get a rough idea of your workers' comp premium.
However, the premium rate can vary depending on industry. The more dangerous the industry, the higher the premium rate. Your premium may also be impacted by your claims history. The average premium rate in NSW has increased by 8% for the second year in a row.
To understand how these premiums are governed, it is essential to distinguish between the two primary bodies: icare and SIRA NSW. icare acts as the service provider and manager of the Workers Compensation Nominal Insurer (the entity that provides the actual insurance), while the State Insurance Regulatory Authority (SIRA) serves as the independent regulator that sets the rules and monitors scheme performance. The Nominal Insurer is a statutory legal entity that operates the Workers Compensation Insurance Fund, providing cover for the vast majority of private sector employers in the state
Victoria
For 2024-2025, the average premium rate is 1.80%.
This means you multiply the amount you spend on remuneration by 1.80% to get a rough idea of your workers' comp premium.
However, the premium rate can vary depending on industry. The more dangerous the industry, the higher the premium rate. Your premium may also be impacted by your claims history.
Queensland
For 2024-2025, the average premium rate is 1.34%. It is one of the lowest average rates in Australia
This means you multiply the amount you spend on remuneration by 1.34% to get a rough idea of your workers' comp premium (known in Queensland as WorkCover).
However, the premium rate can vary depending on industry. The more dangerous the industry, the higher the premium rate. Your premium may also be impacted by your claims history.
Western Australia
For 2024-2025, the average premium rate is 1.73.
This means you multiply the amount you spend on remuneration by 1.73% to get a rough idea of your workers' comp premium.
However, the premium rate can vary depending on industry. The more dangerous the industry, the higher the premium rate.
Your premium may also be impacted by your claims history and even which insurer you choose. It's particularly important to compare prices if you live in WA.
South Australia
For 2024-2025, the average premium rate is 1.85%.
This means you multiply the amount you spend on remuneration by 1.85% to get a rough idea of your workers' comp premium.
However, the premium rate can vary depending on industry. The more dangerous the industry, the higher the premium rate. Your premium may also be impacted by your claims history. South Australia has maintained the same average premium rate as last year.
Tasmania
For 2024-2025, the average premium rate is 1.89%.
This means you multiply the amount you spend on remuneration by 1.89% to get a rough idea of your workers' comp premium.
However, the premium rate can vary depending on industry. The more dangerous the industry, the higher the premium rate.
Your premium may also be impacted by your claims history and even which insurer you choose. It's particularly important to compare prices if you live in TAS.
Australian Capital Territory
For 2024-2025, the average premium rate is 2.00%.
This means you multiply the amount you spend on remuneration by 2.00% to get a rough idea of your workers' comp premium.
However, the premium rate can vary depending on industry. The more dangerous the industry, the higher the premium rate.
Your premium may also be impacted by your claims history and even which insurer you choose. It's particularly important to compare prices if you live in ACT. ACT's average premium rate has declined for the last 3 years, down from 2.33% in 2022-23.
Northern Territory
Each business is assigned a rate relative to the risk of their industry. Your gross annual spend on wages is then multiplied by this rate to get your premium.
However, your premium may also be impacted by claims history or even which insurer you choose.
An overview of workers' compensation across Australia
Choose the tab with your state to see who needs workers' compensation, whether you might be exempt, and where you can find more information.
Any employer in South Australia who pays $13,760 or more in wages for the 2022-23 financial year
Who doesn't need it
Employers who pay less than $13,760 in total for the 2020-21 financial year. (However, if your employee is injured at work, you must report the injury, register and pay the minimum premium.)
Self employed people with no employees or apprentices
Self-insured employers, usually very large companies
The number of serious workers' compensation claims in 2020-2021 was 130,195. Of these, 12,155 were for mental health conditions. 474 claims were for COVID. Read more statistics here.
What's covered by workers' compensation?
Workers' compensation claims are decided on a case by case basis and rules vary between states. Here's a general overview:
Covered
On-site breaks. Employees are generally covered if they're on-site
Off-site breaks. Employees are covered in NSW, VIC, QLD and NT. They're usually not covered in TAS though, although there are some exceptions. They're not covered at all in SA.
Commuting (ACT, QLD, NT). The ACT covers commutes without restrictions. QLD and NT are generally covered, but with limits.
Illnesses and injuries outside of work. Employees can still make claims for illnesses and injuries that happen outside the workplace, but they'll have to prove their employment was a main contributing factor.
Work-related travel. Employees are covered while undertaking work-related travel. Conditions are stricter in VIC than in other states.
Not Covered
Serious and wilful misconduct. This includes being under the influence of drugs or alcohol, committing a crime. However, death and serious injury benefits may still apply
Self-inflicted injuries. Employees can't make a claim for death, injury or illness that was self-inflicted.
Commuting (NSW, TAS, WA, SA, VIC). NSW and TAS are generally not covered, though there are exceptions. WA, SA and VIC employees are rarely covered at all.
False information. If the employee lied about pre-existing conditions, they may be excluded from making a related claim.
Get a quote for workers' compensation insurance
In Australia, there are 11 workers' compensation schemes. All 8 states or territories have their own one and there are 3 Commonwealth schemes. Find a quote below based on where your business operates.
Receive a Quote for Workers Compensation
If you are ready to speak with a consultant about different business insurance options available, simply enter your details in the form. Keep reading if you want to learn more about the different types of cover available.
Yes, workers' compensation insurance premiums are generally a tax-deductible business expense for Australian employers. The Australian Taxation Office (ATO) allows businesses to deduct these costs as they are incurred in the process of earning assessable income.
No, sole traders cannot generally cover themselves with workers' compensation insurance because they are not considered employees of their own business. Instead, sole traders often take out personal accident and illness insurance or income protection to provide a financial safety net if they are injured.
Yes, employees are typically covered by workers' compensation for injuries that occur in the course of their employment while working from home. Employers maintain the same duty of care to ensure a safe work environment for remote staff as they do for those in a traditional office setting.
Yes, psychological injuries are covered if work is the significant contributing factor. However, claims are generally excluded if the condition arose from reasonable management action taken in a reasonable way such as performance appraisals, disciplinary meetings, or transfers.
The state where the employee is 'usually based' is the 'state of connection' and determines which scheme applies. While this means you only need one policy for that specific worker even if they travel, employers with staff based in different states must still hold separate workers' compensation policies for each relevant state or territory scheme.
You may be required to provide workers' compensation for subcontractors if they are classified as 'deemed workers' under your specific state's legislation. This classification often applies if the subcontractor performs the work personally and does not have their own workers' compensation policy or a formal business structure like a proprietary limited company.
Sources
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Alex Reid is Finder’s business insurance cadet. He has a Master of Marketing from the University of Technology Sydney, with a background in business and sales. When not writing about business insurance for Finder he's a keen scuba diver, recently completed his 200th hour underwater and his PADI Divemaster certification. Before working at Finder he lived in Hangzhou China, where he studied Mandarin and Chinese culture.
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With a background in writing across education, Web3, and finance, Cameron’s mission is to create content that speaks directly to readers in a way that’s easy to understand, helping them navigate complex topics with confidence. Cameron studied a Bachelor of Commerce, Economics and Marketing at Macquarie University, graduating in 2019.
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I have an investment property in ACT and own home in NSW. I have been advised by the insurer of the investment property that going forward I will have to get separate cover if I employee a cleaner, Gardner ect. who are domestic works. This has got me thinking about by own home (where I live at). Will I be covered if a Gardner (or other domestic worker) lodges a claim from me for an injury they sustain while working at my place/ Or do I need an additional insurance for this. My understanding is that my public liability cover does will not cover that.
Finder
CeydaFebruary 12, 2026Finder
Hi Sam, great question! You are correct about the public liability insurance included in your home insurance, this cover is reserved for injuries sustained by visitors or third parties, not someone who is considered your ’employee.’ Whether you need to take out cover for domestic workers on your property will come down to a few things. If they are a sole trader, they are responsible for taking out public liability insurance. In NSW, you may be required to take out workers compensation insurance if you employ a domestic worker (such as a cleaner or gardener) and they work more than 10 hours per week or are paid more than $7,500 per year. This is often an add-on to standard home insurance. Home insurers differ on this matter, so it’s best to contact your insurer directly to find out how they would treat this scenario. I hope this helps!
PeterFebruary 3, 2026
I am operating a flooring company. My wife and I are both directors. We do not employ workers. However, we do subcontract flooring installation jobs. I wonder if I need to have worker compansation insurance for those subcontractors? Thanks.
Finder
SarahFebruary 4, 2026Finder
Hi Peter,
Independent contractors usually hold their own insurance. But they may be deemed ’employees’ for the purpose of worker’s comp if they work solely for you, use your tools, are paid hourly, or don’t run an independent business. If they operate as a separate company with their own ABN and insurance, they generally don’t need to be on your policy. Hope this helps!
BrettJanuary 19, 2026
Can you tell me if I need Workers Comp for my company that has two employees/managers and currently are not making a profit?
Finder
SarahJanuary 22, 2026Finder
Hi Brett,
If you engage people to work for your business, even if they are not paid a wage or the business is not turning a profit, they may still be classified as workers or fall under specific categories requiring coverage. According to WorkSafe in QLD, PAYG employees and some contractors are generally considered workers, but the legal definition can be complex and there are some exceptions to the rule. Each state and territory has different rules, so your best bet is to contact them directly for advice. Hope this helps!
BillieNovember 20, 2025
Hello,
We run a Christmas Tree business that has volunteer workers for about 6 weeks of the year in WA.
Could you please direct me on what type of insurance to get to have the volunteers covered by workers’ compensation?
Thank you
Billie
Finder
SarahNovember 24, 2025Finder
Hi Billie,
You’ll need to purchase Voluntary Workers Personal Accident Insurance to cover your volunteer workers in WA. This is a separate policy from standard workers’ compensation, as volunteers don’t earn any income so they are not covered by that scheme. This insurance protects them from accidents, illness and injury during their unpaid work. You can learn more about Voluntary Workers Personal Accident Insurance here. Hope this helps!
KevinFebruary 17, 2025
I am a sole trader working for my company and need a casual labourer or junior carpenter to help me part time. I do not know if his or her annual wage will be over $7500 so wasn’t sure if I need the work comp insurance. What should I do in this case?
Finder
AngusFebruary 18, 2025Finder
Hi Kevin, We can’t give specific legal advice on this point. The rules also vary depending what state you’re in – some don’t require workers compensation if the wages paid are under $7,500, but others do. Note also at a typical casual rate of $35 an hour, more than 4 hours a week would mean paying more than $7,500 in a year. It would be worth checking with your relevant state authority for additional guidance.
Liability insurance is a broad term that describes a few types of business insurance cover. The type you need will depend on the nature of your business.
Find protective cover for volunteer workers from Australian insurance brands. Find out what is covered and excluded under voluntary workers insurance.
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I have an investment property in ACT and own home in NSW. I have been advised by the insurer of the investment property that going forward I will have to get separate cover if I employee a cleaner, Gardner ect. who are domestic works. This has got me thinking about by own home (where I live at). Will I be covered if a Gardner (or other domestic worker) lodges a claim from me for an injury they sustain while working at my place/ Or do I need an additional insurance for this. My understanding is that my public liability cover does will not cover that.
Hi Sam, great question! You are correct about the public liability insurance included in your home insurance, this cover is reserved for injuries sustained by visitors or third parties, not someone who is considered your ’employee.’ Whether you need to take out cover for domestic workers on your property will come down to a few things. If they are a sole trader, they are responsible for taking out public liability insurance. In NSW, you may be required to take out workers compensation insurance if you employ a domestic worker (such as a cleaner or gardener) and they work more than 10 hours per week or are paid more than $7,500 per year. This is often an add-on to standard home insurance. Home insurers differ on this matter, so it’s best to contact your insurer directly to find out how they would treat this scenario. I hope this helps!
I am operating a flooring company. My wife and I are both directors. We do not employ workers. However, we do subcontract flooring installation jobs. I wonder if I need to have worker compansation insurance for those subcontractors? Thanks.
Hi Peter,
Independent contractors usually hold their own insurance. But they may be deemed ’employees’ for the purpose of worker’s comp if they work solely for you, use your tools, are paid hourly, or don’t run an independent business. If they operate as a separate company with their own ABN and insurance, they generally don’t need to be on your policy. Hope this helps!
Can you tell me if I need Workers Comp for my company that has two employees/managers and currently are not making a profit?
Hi Brett,
If you engage people to work for your business, even if they are not paid a wage or the business is not turning a profit, they may still be classified as workers or fall under specific categories requiring coverage. According to WorkSafe in QLD, PAYG employees and some contractors are generally considered workers, but the legal definition can be complex and there are some exceptions to the rule. Each state and territory has different rules, so your best bet is to contact them directly for advice. Hope this helps!
Hello,
We run a Christmas Tree business that has volunteer workers for about 6 weeks of the year in WA.
Could you please direct me on what type of insurance to get to have the volunteers covered by workers’ compensation?
Thank you
Billie
Hi Billie,
You’ll need to purchase Voluntary Workers Personal Accident Insurance to cover your volunteer workers in WA. This is a separate policy from standard workers’ compensation, as volunteers don’t earn any income so they are not covered by that scheme. This insurance protects them from accidents, illness and injury during their unpaid work. You can learn more about Voluntary Workers Personal Accident Insurance here. Hope this helps!
I am a sole trader working for my company and need a casual labourer or junior carpenter to help me part time. I do not know if his or her annual wage will be over $7500 so wasn’t sure if I need the work comp insurance. What should I do in this case?
Hi Kevin, We can’t give specific legal advice on this point. The rules also vary depending what state you’re in – some don’t require workers compensation if the wages paid are under $7,500, but others do. Note also at a typical casual rate of $35 an hour, more than 4 hours a week would mean paying more than $7,500 in a year. It would be worth checking with your relevant state authority for additional guidance.