Workers compensation insurance in Western Australia

How workers compensation works in Western Australia

• WorkCover WA says employers must have workers compensation insurance for anyone they employ who the legislation defines as a 'worker', including cover for claims at common law. The Act is the Workers Compensation and Injury Management Act 2023.
• The definition of a worker is broad. It covers full-time, part-time, casual and seasonal workers, and contractors and subcontractors can also be workers, depending on their working arrangement.
• Generally, individuals can't cover themselves for workers compensation, even if they are self-employed. A working director of a company is the exception.
• A worker needs to be covered in a single state or territory only. The premium payable depends on the worker's 'state of connection'.
• To set a premium, the insurer asks for a remuneration declaration, assigns an industry classification based on the business's predominant activity and looks at its risk factors. It can then discount or load the recommended industry rate.
• WorkCover WA publishes recommended premium rates annually. The Act requires an employer to declare estimated remuneration when applying for or renewing a policy, and the remuneration actually paid once the policy period ends.