How to get workers compensation insurance

Calculate your wages bill

To calculate your total wages, include:

• salaries, wages, overtime, shift and other allowances
• over-award payments, bonuses or commissions
• payments to working directors, including directors' fees, or amounts paid instead of wages, including payments to family members
• payments to pieceworkers
• payments for sick leave, public and annual holidays
• payments for associated leave loadings
• the value of any non-cash substitutes
• employer-paid or payable superannuation contributions, including the superannuation guarantee levy
• the grossed-up value of fringe benefits, counted at the value of the benefit multiplied by the relevant Australian Tax Office fringe benefit formula
• long service leave payments, including lump sum payments instead of long service leave
• termination payments, including lump sum payments for annual leave, long service leave, sick leave and related leave loadings
• trust distributions to workers in lieu of wages for work done for the trust.

Wages do not include:

• payments to non-working directors
• compensation payments under the Workers Compensation Act 1987
• GST components to worker payments.

Count your workers

Ensure you cover all workers and ‘deemed workers’ as listed in Schedule 1 of the Workplace Injury Management and Workers Compensation Act 1998. Use the Worker or contractor tool to verify worker status.

If you’re unsure, you can apply for a private ruling.

Private Rulings do not impact the entitlements of any workers to make a claim under the Workers Compensation Act 1987.

Contact a licensed insurer

To apply for workers compensation insurance, contact a licensed insurer. Provide details about wages paid and the number of workers to be covered.

Many businesses can obtain insurance through icare or a specialised insurer depending on their industry. Large employers may consider applying to become a self-insurer.