Comparison of Workers’ Compensation Arrangements in Australia and New Zealand (2012)

Table 2.3: Key features of schemes

	New South Wales	Victoria	Queensland	Western Australia	South Australia	Tasmania	Northern Territory	Australian Capital Terrirory	C’wealth	New Zealand
Employees covered for workers’ compensation	3 089 100	2 535 200	1 892 100	1 070 500	710 400	205 300	112 900	130 600	364 400	1 795 600
Number of serious claims with one week or more incapacity (2009-10)	43 950	23 990	29 380	12 330	8 850	3 160	1 340	1 710	2 720	19 190
Number of serious claims per 1000 employees (2009-10)	14.2	9.5	15.5	11.5	12.5	15.4	11.9	13.1	7.5	10.7
Compensated deaths per 100 000 employeees (2009-10)	1.4	1.5	2.3	1.7	1.0	1.9	3.5	2.7 (ACT Private Sector only)	8.5	5.6
Scheme funding	Managed	Central	Central	Private insurers	Central	Private insurers	Private insurers	Private insurers	Central	Central
Standardised Average Premium rate (% of payroll)	1.82 2009–10 1.83 (2008–09)	1.39 2009–10 1.38 (2008–09)	1.12 2009–10 1.06 (2008–09)	1.22 2009–10 1.14 (2008–09)	2.76 2009–10 2.82 (2008–09)	1.40 2009–10 1.38 (2008–09)	1.82 2009–10 1.74 (2008–09)	2.03 2009–10 2.13 (2008–09)	0.93 2009–10 0.95 (2008–09)
Standardised Funding Ratio (%)	100 2009–10	121 2009–10	130 2009–10	122 2009–10	62 2009–10	118 2009–10	102 2009–10	not available	100 2009–10
Excess/ Unfunded (30 June 2011)	$2363m unfunded.	$671m excess	$343m (funded)	Not available	(nothing provided)	(nothing provided)	Nil	not available	(nothing provided)	$288m Unfunded Work Account Only
Access to Common Law	Yes	Yes - limited	Yes	Yes	No	Yes	No	Yes	Yes - limited

Coverage of workers — Determining what type of workers should be covered for workers’ compensation is very important as penalties can apply if an employer does not insure its workers. A number of jurisdictions apply tests to determine if a worker requires coverage. Table 2.4a provides a summary of coverage and Table 2.4b provides information to help to determine whether a worker is covered. Employers should contact their workers’ compensation authority if they are unclear whether a worker is covered or not.
Table 2.4a: Summary of coverage (see Table 3.1a for more information)

	Coverage of employees	Coverage of independent contractors	Coverage of labour hire workers
New South Wales	A person who has entered into or works under a contract of service or a training contract with an employer (whether by way of manual labour, clerical work or otherwise, and whether the contract is expressed or implied, and whether the contract is oral or in writing) – s4(1) (1998 Act)	Not unless contractor is a deemed worker pursuant to Schedule 1, 1998 Act.	Yes, labour hire firm held to be employer. S.5.
Victoria	‘‘worker means an individual- (a) who- (i) peforms work for an employer; or (ii) agrees with an employer to perform work- at the employer’s direction, instruction or request, whether under a contract of employment (whether express, implied, oral or in writing) or otherwise; or (b) who is deemed to be a worker under this Act;’: s5(1)	No, if employed under contract for service; they are covered if enter into any form of contract of employment (definition of ‘worker’ in s5(1))	Yes, labour hire firm held to be employer (definition of ‘worker’ in s 5(1)
Queensland	A worker is an individual who works under a contract of service (s11 Workers’ Compensation and Rehabilitation Act 2003). A person who works under a contract, or at piecework rates, for labour only or substantially for labour only is a worker (Schedule 2 (1.1), Workers’ Compensation and Rehabilitation Act 2003).	No, if employed under contract for services. The following guidance for determining whether a person is a worker is provided:	Yes, labour hire firm held to be employer
Western Australia	Any person who has entered into or works under a contract of service or apprenticeship with an employer, whether by way of manual labour, clerical work, or otherwise and whether the contract is expressed or implied, is oral or in writing. The meaning of worker also includes: a) any person to whose service any industrial award or industrial agreement applies, and any person engaged by another person to work for the purpose of the other person’s trade or business under a contract with him for service, the remuneration by whatever means of the person so working being in substance for his personal manual labour or services – s5(1).	No, unless employed under contract for service and remunerated in substance for personal manual labour or service.	Yes, labour hire firm held to be employer
South Australia	a) a person by whom work is done under a contract of service (whether or not as an employee) b) a person who is a worker by virtue of section 103A c) a self-employed worker and includes a former worker and the legal personal representative of a deceased worker. S3(1)	Yes, if undertake prescribed work or work of a prescribed class. S3(6)	Yes, labour hire firm held to be employer
Tasmania	• Any person who has entered into, or works under, a contract of service or training agreement with an employer, whether by way of manual labour, clerical work or otherwise, and whether the contract is express or implied, or is oral or in writing, and • Any person or class taken to be a worker for the purposes of the Act – s3(1).	Persons engaged under a contract for services are not covered UNLESS the contract is for work exceeding $100 that is not incidental to a trade or business regularly carrried out by the contractor (S.4B).	Labour hire workers are generally covered with the labour hire company taken to be the employer.
Northern Territory	Contract or agreement of any kind to perform work or a service, unless an ABN is supplied in writing.	Not if an ABN is supplied in writing, otherwise yes	If the individual’s contract or agreement is with the Labour Hire business they are the employer.
Australian Capital Territory	Individual who has entered into or works under a contract of service with an employer, whether the contract is expressed or implied, oral or written – s8(1)(a), workers for labour only or substantially labour only s8(1)(b), or works for another person under contract UNLESS they are paid to achieve a stated outcome, and has to supply plant and equipment, and is (or would be) liable for the cost of rectifying any defective work s8(1)(i)(a-c) OR has a personal services business determination s8(1)(ii)	No, if employed under contract for services. However, there are provisions for the coverage of regular contractors.	Yes , where the individual is not an executive officer of the corporation and: • the individual has been engaged by the labour hirer under a contract for services to work for someone other than the labour hirer • there is no contract to perform work between the individual and person for who work is to be performed • the individual does all or part of the work
C’wealth Comcare	A Employee – a person employed by the Commonwealth or by a Commonwealth Authority whether the person is so employed under a law of the Commonwealth or a Territory or under a contract of service or apprenticeship	No, if employed under contract for service	Possibly, according to definition of nature of contract
C’wealth Seacare	Seafarer (person employed in any capacity on a prescribed ship or the business of the ship, other than: a pilot, a person temporarily employed on the ship in port, or a person defined as a special personnel in s283 of the Navigation Act), trainee, person attending approved industry training or registering availability for employment or engagement on a prescribed ship – s4	No, compensation only through employment of employees	Possibly, according to definition of nature of contract
C’wealth DVA	Member or former member of the Permanent Forces, Reserves, or cadets of the Australian Defence Force who has rendered service on or after 1 July 2004 – MRCA s5.	Only if a “declared member” - s8	Only if a “declared member” - s8
New Zealand	An earner is a natural person who engages in employment for the purposes of pecuniary gain, whether or not as an employee s(6)	Yes	Yes, labour hire firm held to be employer