Workers compensation is compulsory for all employers in all states and territories of Australia. In general workers compensation covers the loss of wages, as well as medical expenses, following an injury that occurred at work.

 

The premium is a percentage amount of the gross wages you pay. You are required to submit a declaration stating the exact amount of wages paid during the period. The premium is then adjusted up or down, dependant on whether you under or over estimated the wages.

 

Legislation varies significantly from state to state and so do the premiums. In some states / territories, the premium rates are set by the Government and are unchangeable. In other states / territories, such as the A.C.T, the insurance companies set the premiums and the system is highly competitive.