WORKERS COMPENSATION INSURANCE
Do you need it? What is required?
Compulsory insurance policy
Worker’s compensation insurance is a legal, compulsory requirement for all employers across all states and territories in Australia. This is to provide some financial protection to workers in the case where they suffer a work-related injury or succumb to a work-related disease.
What employees are included?
Any workers who are employed or hired by you full-time, part-time, or casual and even some contractors are included. Furthermore, apprentices and other workers under an oral or written contract or agreement must also be included and therefore you must have a worker’s compensation insurance policy to cover all of these categories of ‘worker’.
How does the employee benefit?
Weekly payments, benefits such as payment of medical expenses, access to rehabilitation services and even lump-sum payments are all possible benefits to the worker in the event they suffer a work-related injury or disease.
How is the compensation managed?
Workers’ compensation is looked after differently around Australia. In Queensland, the worker’s compensation scheme is handled by the state, whereas insurers act as agents to the state governments to manage the schemes in New South Wales, Victoria and South Australia. In TAS, Western Australia, Australian Capital Territory and Northern Territory private insurers manage the worker’s compensation schemes.
What is worker’s compensation called in your area?
Worker’s compensation is known by different names around Australia. The following shows what it is called depending on the state or territory you are in:
Your premiums and obligations
The premiums you pay are calculated on the amount of wages or salary you pay your employees, the industry you are in and any previous claims your business history shows.
You will be required to keep various employer records:
- PAYG payment summaries
- Worker payment records
- Records relating to payments to Employees
- Tax File Number declarations and withholding declarations
- Withholding variation notices
- Annual reports
- Superannuation records, and
- Records of any Fringe Benefits provided
Each year you will be required to declare all employees you employed during the year and all employee wages/salary you paid.
How can we help?
At Positive Traction Bookkeeping we can help you set up or adjust your worker’s compensation insurance policy, prepare and lodge your annual declaration and run off the reports and figures to help you do it yourself.
Summary
Worker’s compensation insurance to cover all employees of many types is compulsory for all employers across Australia. Each year each employer must submit a declaration to your worker’s insurance provider declaring all employees and their wages for that year.