Our guidance: Contractor (Not a worker or a deemed worker)
Based on your inputs, the person appears to be a 'contractor' for the purpose of calculating premiums, as per the workers compensation legislation.
Payments to contractors are not assessable as wages for the purposes of workers compensation premium calculation.
As per Section 175B (2) of the Workers Compensation Act 1987, a principal contractor is liable for the payment of any workers compensation insurance premiums payable by its sub-contractor. However, the principal contractor’s liability will not arise if they receive a written statement from the sub-contractor. That statement must say the sub-contractor has covered its workers and deemed workers with workers compensation insurance, for the period of the contract.
Your subcontractor may use this form however, this form cannot be used for a contract entered into by a principal contractor for work carried out at their place of residence, or if the sub-contractor is in receivership.
It is recommended that contractors hold a sickness and accident/injury and/or income protection insurance policy.
Notices
- This outcome provides general guidance only for the purpose of calculating premiums for workers compensation insurance. The tool is not designed for determining either claims eligibility or liability. You should obtain independent legal advice in relation to any liability decision or dispute.
- The outcome depends on the inputs submitted by the user, based on the disclaimer you agreed to before using the tool. You must use your own skill and care with respect to the use of the tool. Professional advice (for example, legal and/or actuarial) in relation to your specific situation (and in relation to interpreting your contract with the person performing work) should be obtained before any action or decision is taken based on any outcome made by this tool.
Updated 31 May 2023