Workers Compensation Insurance is a mandatory policy that employers must have unless they qualify for an exemption. It forms part of a comprehensive framework for managing workplace injuries and ensuring fair compensation for workers.
Where can you get it?
ICare is the largest insurer for workers compensation, there are other available options but ICare is by far the largest insurer. All employees in Australia need to be covered under a workers compensation policy. If you are paid through an ABN it is your responsibility to obtain this insurance.
How much does it cost?
Workers compensation insurance is calculated as a percentage of your salary, between 3-15% depending on industry, as a TFN employee you do not need to worry about this as your employer is required to hold the policy for you.
Why is it important?
Healthcare is expensive, that’s why insurance such as this exists, but it doesn’t just cover your hospital visit but your income while you recover. We all have people who rely on us to make income and take care of them, workers compensation insurance ensures that if something does happen you’re covered financially.
Here is an example of a worst case scenario. For example – Harry, an English working holiday maker, is employed by a small carpentry company. They recommend that he work as a contractor under an Australian Business Number (ABN). Unfortunately, Harry has an accident at work and hurts his back, and he is considered the responsible party.
Since he lacks insurance coverage as a result, he must bear the costs of his recovery and any associated penalties. Had he been a Tax File Number (TFN) employee, he would have been covered by the carpentry company’s policy, allowing him to recover without stress.
So if you’re injured at work in Australia you are covered by workers compensation insurance, just remember if you work as an ABN subcontractor it is your responsibility to contact ICare and organise your own insurance policy at your own cost, or work with a reputable labour hire business and get paid correctly.
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