Close Menu
Riches Review

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    Understanding Income Protection: A Safety Net for Your Income

    July 2, 2025

    Your cover is designed to be flexible

    July 2, 2025

    Six Steps to Turn your First-Home Dream into Reality

    July 2, 2025
    Demo
    Facebook X (Twitter) Instagram
    • Insights to Grow your Wealth in Australia |
    • About Us
    • Advertise
    • Subscription Plans & Packages
    Facebook X (Twitter) Instagram YouTube
    Riches ReviewRiches Review
    • Home
    • Financial Planning
      • Superannuation
    • Investment
      • Shares
      • Property
      • Fixed Interest
    • Insurance
    • Mortgage
    • Business
      • ASX
      • Entrepreneur
      • News
      • Legal
    • Media
      • Podcast
      • Video
    Riches Review
    Home»Insurance»Who needs a workers insurance policy?
    Insurance

    Who needs a workers insurance policy?

    Jeffrey LiuBy Jeffrey LiuAugust 29, 2024Updated:August 29, 20244 Mins Read
    Facebook Twitter LinkedIn Email WhatsApp Copy Link
    Share
    Facebook Twitter LinkedIn WhatsApp Email Copy Link

    Workers Insurance in NSW

    Overview:

    • Workers insurance provides coverage for employers if an employee suffers a work-related injury or illness.
    • This policy covers costs such as weekly compensation, medical expenses, rehabilitation services, and lump-sum payments for death or permanent disability.

    Legal Requirements:

    • Mandatory Coverage: Most employers in NSW are required to have workers insurance.
    • Penalties for Non-Compliance: Businesses without insurance may face fines up to $55,000 and/or imprisonment for up to six months.
    • Minimum Premium: The base premium is $225.

    Definition of Employer:

    • An employer is any person or entity that hires workers on a full-time, part-time, or casual basis, including working directors of a corporation.
    • Examples:
      • A household hiring a babysitter or nanny.
      • A farmer who hires a farmhand and provides accommodation and meals instead of wages.
      • Strata bodies or businesses that need to ensure contractors have valid workers insurance to avoid liability as a ‘principal’ for uninsured contractors.

    Exemptions:

    • Insurance is not required if:
      • Annual wages total $7,500 or less.
      • The employer does not have apprentices or trainees.
      • The employer is not part of a premium group.
    • Even exempt employers must assist with injury management and report injuries to icare.
    • Claims against exempt employers incur a $175 administration fee.

    Handling Injuries:

    • Employers must notify icare of any workplace injuries, regardless of their insurance status or exemption.

    Workers vs. Contractors:

    • Certain contractors and subcontractors may be considered workers for insurance purposes.
    • Use the State Insurance Regulatory Authority (SIRA) tool to classify workers correctly.

    Sole Traders and Partnerships:

    • Sole traders and partnership members are not covered for their own injuries under workers insurance but may consider personal accident or income protection insurance.
    • They must obtain workers insurance for any workers they employ.
    • Examples:
      • Barry the Electrical Contractor: Barry operates his electrical contracting business as a sole trader with no employees. As he does not have any workers, Barry is not eligible for workers insurance.
      • Steve and Jason the Tilers: Steve and Jason run a tiling business as a partnership and employ an apprentice. They are required to have workers insurance to cover the apprentice, but this insurance does not cover Steve and Jason themselves.

    Small Employers:

    • Employers with an average performance premium of $30,000 or less are classified as small employers.
    • For small employers, claims costs generally do not directly affect premiums.

    Medium to Large Employers:

    • Employers with an average performance premium over $30,000 are experience-rated, meaning their premiums can be influenced by their claims history.
    • A good safety record can lead to lower premiums through the Claims Performance Rate (CPR).
    • Large businesses can opt for Loss Prevention and Recovery (LPR) products to reduce premiums.

    Trusts and Trustees:

    • Working beneficiaries of a trust, who have PAYG tax deducted or receive superannuation contributions, are considered workers and are entitled to compensation.
    • Distributions counted as wages affect insurance premiums.
    • Distributions to non-working beneficiaries do not count as wages, and these individuals are not covered for work-related injuries.

    Want to know more?

    If you’d like to discuss any of the content in this article and how it may apply to you, please call me on 1800 668 153.

    You can also book a discovery call thru our live calendar.

    We love hearing from our readers! Please send us your questions, feedback or interest topic by clicking here.

    Author Profile: Jeffrey Liu, JP, is the founder and principal adviser of Hippo Wealth, with a deep expertise in wealth protection. His extensive experience includes roles in the wealth management divisions of Westpac, ANZ, and a local multi-family office. As the host of “Riches Talk,” a podcast dedicated to cultivating personal and business growth, Jeffrey has established himself as a thought leader in developing life riches. His insights have been featured on SBS, The Australian, and Channel 7. Notably, he was a semi-finalist on Australia’s Got Talent in 2010. Learn more at http://www.hippowealth.com.au.

    • Hi, I'm Jeffrey Liu

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Jeffrey Liu

    Related Posts

    Understanding Income Protection: A Safety Net for Your Income

    July 2, 2025

    Your cover is designed to be flexible

    July 2, 2025

    Living Redundancy Cover Vs Income Protection in Australia: Key Differences

    March 3, 2025

    Combined Life Insurance: Linked vs Standalone Cover

    February 26, 2025
    Add A Comment
    Leave A Reply Cancel Reply

    Editors Picks

    Australians Strongly Support Superannuation System, Survey Reveals!

    May 9, 2025

    Living Redundancy Cover Vs Income Protection in Australia: Key Differences

    March 3, 2025

    Combined Life Insurance: Linked vs Standalone Cover

    February 26, 2025

    RBA Holds Firm: No Rate Cuts on the Horizon

    August 6, 2024
    Top Reviews
    9.4

    Lesson 1: Why is it necessary to learn to invest in stocks?

    By Rich Riches
    9.3

    Lesson 2: First Impression of the US Stock Market

    By Riches Editor
    9.2

    Lesson 3: Five Important Practical Points for US Stocks

    By Riches Editor
    Advertisement
    Demo
    Riches Review
    Facebook X (Twitter) Instagram YouTube
    • Home
    • Financial Planning
    • Shares
    • Superannuation
    • Insurance
    • Podcast

    We want to clarify that RichesReview doesn't offer personal financial advice to readers. Any information provided by our financial writers, contributors, and columnists is general knowledge only. It's important to understand that these insights shouldn't be treated as personalized financial advice. Before making any significant financial decisions, it's crucial to verify the information we provide and seek independent advice from qualified professionals. Taking these steps can help you make well-informed choices that align with your individual financial circumstances and goals.
    © 2025 RichesReview. Looking to advertise? Contact Us. Website Designed and Powered by X Technology.

    Type above and press Enter to search. Press Esc to cancel.

    Our plans & services

    Thank you for your interest in our subscription plans. Please fill out the form below to let us know your needs. Once we receive your details, our team will get in touch to finalise your subscription and provide services.

    Please enable JavaScript in your browser to complete this form.
    Loading