Any employer paying more than $7,500 in wages and super, or employing apprentices or trainees, must take out a WorkCover policy.
If you are a sole trader or a partner in a partnership, you are not an employee of the business and therefore cannot take out a WorkCover policy on yourself. If you are a director of a company or run your business via a trust and you receive wages you will be covered by the WorkCover policy.
Premiums are calculated on the remuneration paid to your employees (this includes wages, salaries, superannuation and other benefits). Each industry is given a classification and the rate for that industry reflects the claims history of that industry. It is therefore very important when completing your application that the description of all your activities is accurate. If your remuneration is $200,000 or less the premium is calculated on the average for the industry. If your remuneration is over $200,000 the rate for your industry is used along with your claims experience and the size of your business.
You may also need to consider if a contractor needs to be covered under your workcover policy. This may include consultants, agents or sub-contractors engaged by your business. The general guidelines include;
- Do they do at least 80% of their work for your business?
- Do they provide their own materials and/or equipment?
- Does the contractor engage staff or sub-contractors?
- Does the contractor undertake advertising?
There are a number of other tests that WorkSafe will consider when determining whether a contractor is to be part of your remuneration for WorkCover purposes.
If you need any help with applying for a new WorkCover policy or to discuss anything regarding your WorkCover policy please contact our office.