Workers compensation insurance in New South Wales
In New South Wales, most employers need a workers compensation policy, and icare sets out who needs cover and how to take out a policy. The State Insurance Regulatory Authority (SIRA) publishes regulatory information on workers compensation.
- By Book Keeping Pros
- Sources checked 15 Oct 2026
Wages in a financial year at or under which no policy is needed, with no apprentice or trainee and no group
$7,500
As published on 15 October 2026
- Average performance premium a year at or under which a business is a small employer
- $30,000
As published on 15 October 2026
Published figures
| What it is | Value | Applies |
|---|---|---|
| Wages in a financial year at or under which no policy is needed, with no apprentice or trainee and no group | $7,500 | As published on 15 October 2026 |
| Average performance premium a year at or under which a business is a small employer | $30,000 | As published on 15 October 2026 |
Each figure is from the source listed below. Checked 15 Oct 2026.
How workers compensation works in New South Wales
- icare says the law requires most employers in NSW to have a workers compensation policy. Anyone who pays or hires someone to work for them, full time, part time or casually, counts as an employer.
- Some small businesses are exempt employers. To be exempt, a business pays wages at or under a threshold in a financial year, hires no apprentice or trainee, and is not part of a group of businesses.
- Sole traders, proprietors and partners can't cover themselves with workers compensation insurance. The Workplace Injury Management and Workers Compensation Act 1998 lists people who are 'deemed' to be workers, such as outworkers and contractors under labour hire arrangements.
- For wage-based industry classifications, the average performance premium is wages multiplied by the Workers Compensation Industry Classification (WIC) rate. Some classifications use a per-capita basis instead. Premiums are calculated at renewal and adjusted using the actual figures.
- icare sorts employers by their average performance premium. Small employers are not experience-rated, but claims can affect discounts and other charges. Medium to large employers are experience-rated, so their claims history affects the premium.
- Cover starts from the time and date the policy is issued, as shown on the certificate of currency. icare says a policy can't be backdated once it is issued.
General information
Sources
- Who needs a policy
Insurance and Care NSW. Undated page, as read on 15 October 2026, released 15 October 2026. Checked 15 October 2026.
© Insurance and Care NSW Licence: icare copyright notice: copyright, State of New South Wales through Insurance and Care NSW (personal, in-house or non-commercial use).
- Take out a policy
Insurance and Care NSW. Undated page, as read on 15 October 2026, released 15 October 2026. Checked 15 October 2026.
© Insurance and Care NSW Licence: icare copyright notice: copyright, State of New South Wales through Insurance and Care NSW (personal, in-house or non-commercial use).
- Premium calculation for small employers
Insurance and Care NSW. Undated page, as read on 15 October 2026, released 15 October 2026. Checked 15 October 2026.
© Insurance and Care NSW Licence: icare copyright notice: copyright, State of New South Wales through Insurance and Care NSW (personal, in-house or non-commercial use).
- Workers Compensation Reform FAQs
Insurance and Care NSW. Page dated 1 October 2026, released 1 October 2026. Checked 15 October 2026.
© Insurance and Care NSW Licence: icare copyright notice: copyright, State of New South Wales through Insurance and Care NSW (personal, in-house or non-commercial use).
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