Home - Do you need workers’ compensation insurance for contractors?

UpdatesApr 03, 2018

Do you need workers’ compensation insurance for contractors?

Most contractors are responsible for their workers’ compensation insurance. However, if you engage contractors on a regular and systematic basis, those workers may be ‘deemed workers’ under workers’ compensation law.

By Brihony Tulloch

Most contractors are responsible for their workers’ compensation insurance. However, if you engage contractors on a regular and systematic basis, those workers may be ‘deemed workers’ under workers’ compensation law. Therefore, your business will need to take out workers’ compensation insurance for them.

Failing to correctly insure deemed workers means your business may be exposed to penalties, including double premiums and additional penalties.

But it’s not a hard and fast rule across all states and territories.

Use the criteria below to determine whether a contractor is a deemed worker according to the legislation in your jurisdiction:

Australian Capital Territory:

New South Wales:

Northern Territory:

Queensland:

South Australia:

Tasmania:

Victoria:

Western Australia:

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