Workers' compensation

4-minute read

Key facts

If you are injured at work, you may be eligible for workers’ compensation.
If you become ill from your work — for example, through asbestos exposure – you can also claim workers’ compensation.
Workers’ compensation insurance may compensate you for wages lost, medical treatment and rehabilitation, depending on the details of the claim.
It's important to notify your employer as soon as possible if you are injured at work.

Workers’ compensation is a compulsory insurance for employees who are injured or get sick at or because of their work. Most employers are required by law to take out this insurance. Small businesses that pay a salary of $7,500 or less do not need to take out workers’ compensation policies.

What does workers' compensation cover?

Workers’ compensation schemes are designed to compensate you if you need medical treatment, rehabilitation or time off to recover after being injured at work. It also covers the costs if you get sick from your work — for example if you develop mesothelioma from asbestos exposure.

If your claim is accepted, the benefits you could receive include:

costs of your medical and hospital treatment
income replacement payments for loss of earnings while you are off work
payment if you are permanently impaired, such as due to a spinal cord injury
death or funeral benefits if you die as a result of a work-related injury or illness

Some schemes treat psychological trauma and mental illnesses in the same way as they treat physical injuries and illnesses, while others don’t. Check with your scheme to find out.

Workers’ compensation schemes

There are 11 workers’ compensation schemes, with 3 for people employed by the Commonwealth Government and 8 for people employed by each state and territory.

The Commonwealth Government schemes are:

Comcare, for:

Commonwealth Government agencies and statutory authorities (but excluding members of the Australian Defence Force who began service on or after 1 July 2004)
ACT Government and its agencies
corporations that have been granted a licence to self-insure

Seacare, for seafarers injured while working at sea
Department of Veterans' Affairs, for current or former members of the Australian Defence Force who began service on or after 1 July 2004

The state and territory workers’ compensation schemes are:

How workers' compensation works

Premiums are paid by the employer. The schemes cover most workers, including full-time workers, part-time workers and apprentices. Some casual workers and volunteers may be included. Most schemes do not cover contractors or sub-contractors.

Workers’ compensation also covers employees while they travel for work or on work-related business.

The injury or illness should have occurred at work or be work-related, and should require medical treatment and/or time off.

Schemes differ, so check whether you are covered and what to do if you plan to make a claim.

Making a claim

If you want to make a claim, you need to:

notify your employer about the work-related injury or illness as soon as possible
see a doctor who can assess your injury or illness and decide what treatment is needed for you to recover — they should issue you with a medical certificate or work capacity certificate if you need time off work
fill in a claim form for your workers’ compensation scheme (some schemes allow you to claim by telephone)
in some cases, attend another medical appointment with a doctor chosen by your employer or insurer to provide further evidence that your injury or illness is work-related, and what treatment is required

Payments for incapacity are generally made to the employer, who passes the payment on to the injured worker. Check with your workers’ compensation scheme for the exact claims process and deadlines for notifying an employer.