Compare workers compensation insurance across all Australian states and territories. View scheme types, premium calculations, coverage details and provider options side by side.
Australia's leading online business insurance platform. BizCover lets you compare workers compensation options from multiple insurers in competitive states - click below to see estimates tailored to your business.
Workers compensation insurance is a mandatory form of cover that protects employees who suffer a work-related injury or illness, and protects employers from the financial costs associated with workplace injuries.
In Australia, workers compensation insurance is a legal requirement for all employers who engage workers. It provides a safety net covering medical expenses, income replacement, rehabilitation and lump sum payments when an employee is injured or becomes ill because of their work. The system is designed to ensure that injured workers receive support without needing to prove fault or take legal action against their employer.
Workers compensation is regulated at the state and territory level, meaning each jurisdiction operates its own scheme with distinct rules, premium structures and benefits. Most states run government monopoly schemes where employers must use the designated state insurer, while Western Australia, Tasmania and the ACT operate competitive markets where employers can choose from approved private insurers.
The national body SafeWork Australia develops harmonised work health and safety (WHS) policy and coordinates national data collection, but each state scheme remains separately administered. Employers should also be aware of their broader obligations under the Fair Work Act 2009 regarding workplace conditions and employee entitlements.
The structure of workers compensation varies across Australian jurisdictions. Understanding which type of scheme operates in your state determines whether you have a choice of insurer.
In NSW, VIC, QLD, SA and NT, employers must obtain workers compensation through the designated state scheme. There is no choice of insurer unless the employer qualifies as a self-insurer. Schemes include icare (NSW), WorkSafe Victoria, WorkCover Queensland, ReturnToWorkSA and TIO (NT).
In Western Australia, Tasmania and the ACT, employers can choose from multiple approved private insurers. This allows comparison of premiums, claims management quality and injury prevention support.
Large employers with strong financial capacity and safety records may apply to self-insure with approval from the state regulator. Self-insurers manage and fund their own workers compensation claims directly rather than purchasing a policy.
Comcare administers workers compensation for Commonwealth Government employees, certain licensed corporations and the ACT public sector under the Safety, Rehabilitation and Compensation Act 1988.
In competitive states (WA, TAS, ACT), employers can compare insurers. In monopoly states, the focus shifts to understanding your obligations and optimising your premium.
Employers in these states can compare multiple approved insurers based on premium rates, claims management reputation, injury prevention support and return-to-work programs.
While there is no insurer choice, employers can still optimise their premium by maintaining accurate wage declarations, managing claims effectively and investing in workplace safety.
Businesses with strong financial capacity and robust safety systems may find self-insurance worth considering. It provides greater control over claims but requires significant administrative capability and regulatory approval.
Each Australian state and territory operates its own workers compensation scheme. This table summarises the key features of each system.
| State/Territory | Scheme | Type | Regulator | Provider Choice? | Avg Premium Rate |
|---|---|---|---|---|---|
| NSW | icare (nominal insurer) | Government monopoly | SIRA | No (except large self-insurers) | ~1.4% of wages |
| VIC | WorkSafe Victoria | Government monopoly | WorkSafe VIC | No | ~1.3% of wages |
| QLD | WorkCover Queensland | Government monopoly | Office of Industrial Relations | No (except self-insurers) | ~1.2% of wages |
| SA | ReturnToWorkSA | Government monopoly | ReturnToWorkSA | No | ~1.5% of wages |
| WA | WorkCover WA | Competitive private market | WorkCover WA | Yes - multiple insurers | ~1.5 - 2.0% of wages |
| TAS | WorkCover Tasmania | Competitive private market | WorkSafe Tasmania | Yes - multiple insurers | ~1.5 - 2.0% of wages |
| ACT | Private insurers | Competitive | ACT Work Safety | Yes | ~1.5 - 2.0% of wages |
| NT | TIO | Government | NT WorkSafe | No | ~1.5% of wages |
| Federal | Comcare | Government | Comcare | No (Commonwealth employees) | Varies |
Disclaimer: Premium rates shown are approximate averages and vary significantly by industry classification, claims history and employer size. Rates are indicative only and subject to change. Confirm current rates with your state regulator or insurer. If you spot something incorrect, please let us know.
In WA, TAS and ACT, employers can choose from approved private insurers. The following providers are commonly compared by Australian businesses seeking workers compensation in these competitive markets.
BizCover provides online workers compensation estimates for small and medium businesses in competitive states. Compare options from multiple insurers with a streamlined digital process.
CGU is an IAG-underwritten insurer offering workers compensation in WA, TAS and ACT. Over 165 years of experience insuring Australian businesses across a wide range of industries.
Allianz offers workers compensation in competitive states with a focus on injury prevention and return-to-work programs. Part of one of the world's largest insurance groups.
QBE is an ASX-listed global insurer offering workers compensation primarily in WA and TAS. Known for industry-specific risk management and return-to-work support.
GIO is an IAG-backed insurer offering workers compensation in competitive states. Provides employer support including workplace safety resources and injury management guidance.
Workers compensation provides a range of benefits to employees who suffer work-related injuries or illnesses. The specific entitlements and durations vary by state.
| Benefit | What It Includes | Notes |
|---|---|---|
| Weekly income payments | Replacement of lost wages while the worker is unable to perform their usual duties | Typically a percentage of pre-injury earnings, reducing over time. Duration and step-down rates vary by state. |
| Medical and hospital expenses | Costs of medical treatment, surgery, hospital stays, medication and allied health services | Covers reasonably necessary treatment related to the work injury. Some states set fee schedules for providers. |
| Rehabilitation | Physiotherapy, occupational therapy, psychological support and vocational rehabilitation | Designed to support recovery and return to work. Employers have obligations to provide suitable duties. |
| Lump sum for permanent impairment | One-off payment for workers who suffer a permanent injury or disability as a result of work | Amount is based on the assessed degree of whole person impairment. Thresholds and assessment methods differ by state. |
| Death benefits | Lump sum payments and ongoing support for dependants of a worker who dies from a work-related injury or illness | Includes funeral expenses and payments to dependants. Amounts are set by state legislation. |
| Travel to treatment | Reimbursement for travel costs incurred attending medical appointments and rehabilitation | Covers reasonable travel where the worker needs to attend treatment related to their workplace injury. |
| Return-to-work programs | Structured plans to help injured workers return to suitable employment as early as safely possible | Employers have a legal obligation to participate in return-to-work planning. Early intervention leads to better outcomes. |
Note: Benefit entitlements, durations and payment amounts vary between states and territories. Always check the specific provisions with your state or territory scheme for current details.
While workers compensation is broad, certain situations fall outside coverage. The specifics vary between state schemes.
Injuries that are deliberately self-inflicted are generally excluded from workers compensation coverage in all states.
Injuries sustained while the worker was engaged in serious and wilful misconduct may be excluded, though coverage for the injury itself may still apply if it results in death or serious permanent disability.
Coverage may be reduced or denied if the injury occurred while the worker was under the influence of drugs or alcohol. The specific rules and thresholds vary by state.
Travel to and from work is not covered in all states. NSW removed general journey claims in 2012. Other states still provide some level of journey cover. Check your state scheme for current rules.
Genuine independent contractors are generally not covered by the engaging business's workers compensation policy. However, some contractors may be deemed workers under state legislation and must be included. The employee vs contractor distinction is critical.
Premiums are calculated using a combination of factors specific to your business. Understanding these can help you manage costs effectively.
Every business is assigned an industry classification code that reflects the level of workplace risk. Higher-risk industries such as construction, mining and manufacturing attract higher premium rates than office-based work.
Premiums are calculated as a percentage of your total remuneration. Higher payrolls mean higher premiums. Accurate wage declarations are essential to avoid year-end audit adjustments.
Your past claims record directly affects your premium through experience modification. Businesses with fewer and less severe claims typically receive a discount, while those with poor claims history pay a loading.
The number and type of workers you employ influences both the total payroll figure and the overall risk profile used to calculate your premium.
Employers with documented workplace health and safety systems, low incident rates and proactive injury prevention programs may attract lower premiums or premium discounts.
Average premium rates differ between state schemes. Queensland tends to have the lowest average rate (~1.2%) while competitive states and SA tend to be higher (~1.5 - 2.0%).
Workers compensation premium rates vary dramatically by industry. The following are indicative industry rate ranges expressed as a percentage of total wages.
Disclaimer: These industry rate ranges are indicative estimates only and vary significantly by state, specific industry sub-classification, claims history and employer size. Actual premiums are determined by your state scheme or insurer. See SafeWork Australia for national workers compensation data and statistics.
Lower premiums are primarily achieved through fewer and less severe workplace injuries. These practical steps may help manage costs.
A documented workplace health and safety system that identifies hazards, assesses risks and implements controls can reduce injury frequency and may be recognised by your scheme or insurer with premium discounts.
Early and proactive return-to-work programs reduce claim duration and costs. Having suitable duties ready for injured workers supports faster recovery and lowers your experience modification.
Verify your industry classification code accurately reflects your primary business activities. An incorrect classification can result in overpaying or underpaying premiums.
Early injury reporting and intervention typically leads to better health outcomes for workers and lower overall claim costs, which improves your experience rating over time.
Proactive identification and management of workplace hazards helps prevent injuries before they occur. Regular reviews of work processes, equipment and training are worth prioritising.
The claims process involves both the injured worker and the employer. Understanding each step helps ensure claims are handled smoothly and workers receive timely support.
The injured worker reports the injury or illness to their employer as soon as practicable. The employer should document the incident details, including time, location and circumstances.
The employer completes and submits the workers compensation claim form to their state insurer or scheme. This should be done promptly - most states have timeframes for lodgement.
The insurer reviews the claim, medical evidence and workplace information to determine whether the injury is work-related and covered. They must make a decision within the timeframe set by state legislation.
Once accepted, the insurer arranges and funds appropriate medical treatment and rehabilitation. The treating doctor and rehabilitation provider work with the worker and employer on recovery.
The employer, worker and insurer collaborate on a return-to-work plan that includes suitable duties, graduated hours and any workplace modifications needed. Employers have a legal obligation to participate.
The claim is resolved when the worker returns to full duties, reaches maximum medical improvement, or the claim is otherwise settled. If the worker disagrees with any decision, they can access the state's dispute resolution process.
Workers compensation in Australia operates under a complex framework of state, territory and federal legislation. These are key points for employers to understand.
SafeWork Australia is the national body that develops harmonised work health and safety and workers compensation policy. While it does not regulate individual employers directly, its model laws form the basis of WHS legislation adopted (with variations) by most states and territories.
The model Work Health and Safety Act has been adopted by most Australian jurisdictions, creating broadly consistent employer duties across the country. Victoria and Western Australia maintain their own separate WHS legislation but share many similar principles.
Despite harmonisation efforts, significant differences remain between state workers compensation schemes in areas such as benefit levels, claims timeframes, dispute resolution processes, journey claim coverage and step-down rates for weekly payments.
Employers who fail to maintain workers compensation insurance face serious consequences including fines (often exceeding $50,000), prosecution, and personal liability for the full cost of any workplace injuries. In some states, directors may also face individual penalties.
The classification of a worker as an employee or contractor is critical for workers compensation obligations. State legislation may deem certain contractors as workers, requiring the engaging business to include them in their policy. The ATO and state regulators provide guidance on determining worker status.
In competitive states, your workers compensation policy and certificate of currency are important documents. In monopoly states, the state scheme sets the terms by legislation.
A certificate of currency confirms that your workers compensation insurance is current and valid. Principals, head contractors and clients may request this as evidence of coverage before you start work on their site.
Your policy covers employees based on the wages you declare. Ensure you understand what constitutes remuneration under your state scheme - it typically includes base salary, overtime, bonuses, superannuation contributions and allowances.
Your premium rate is linked to the industry classification code assigned to your business. If your business activities change, notify your insurer or scheme to ensure the classification remains accurate.
Your policy outlines your obligations as an employer, including maintaining a safe workplace, reporting injuries promptly, participating in return-to-work programs and keeping accurate payroll records. Non-compliance with these duties may affect your coverage.
Answers to the questions Australian employers most frequently ask about workers compensation insurance.
Key workers compensation terms explained in straightforward language.
Browse workers compensation providers commonly compared by Australian employers. Provider availability varies by state.
Find out which workers compensation options may suit your business in competitive states. Compare providers, premium rates and claims support before committing.