Guide to Workers Compensation for Household Employers in Australia

Everything You Need To Understand About Workers Compensation

You may be adding a new string to your bow when taking on a nanny. As well as being a parent, you’ll become an employer. If you’ve never taken on anyone before, the red tape can feel a far cry from what you might use to wrap the kids’ birthday presents with.

It’s important to have your ducks in a row. That includes an understanding of the types of insurance you’ll need. One of these is Workers’ Compensation insurance. Read on for the lowdown.

What Is Workers’ Compensation Insurance?

There are workplace risks in any kind of job. This includes the work a nanny does. Workers’ Compensation is a type of insurance payment for employees. It kicks in should they suffer an injury or get sick because of the work they do. It covers:

●     A person’s wages while they're unfit for work

●     An employee’s medical expenses and any potential rehabilitation costs

By law, employers in every state or territory must take out Workers’ Compensation insurance. They also have to pay the premiums.

Workers’ Compensation by State and Territory

WorkCover’s been a one-size-fits-all term that refers to Workers’ Compensation across Australia. How it works varies depending on where you live.

Recent changes in some areas may also mean the name we call it could now vary too. The Australian government administers some schemes. In other states and territories, private insurers underwrite the scheme or act as scheme agents. Here’s a breakdown:

1.   New South Wales

Three agencies now manage what used to be WorkCover. These are:

1. SafeWork NSW. It Does the following:

• Gives advice about workplace health and safety (WHS)
• Grants licences and registrations for any dangerous work
• Investigates workplace incidents and enforces WHS safety laws

2. icare (short for Insurance and Care NSW). It does this:

• Provides Workers’ Compensation insurance
• Provides treatment to those severely injured at work or on the road

3. SIRA (short for State Insurance Regulatory Authority). It’s responsible for this:

• The regulation of motor accidents and compulsory third party (CTP) insurance
• The regulation of Workers’ Compensation insurance

2.   Victoria

Here, WorkCover insurance gets funded by employers’ contributions: These will cover:

• Replacement of lost income
• Medical, rehabilitation treatment and legal costs
• Lump-sum compensation after a serious injury

3.   Queensland

The state’s WorkCover offers its own Household Workers’ Insurance policy. As a useful reminder, it cites two examples of when the policy might cover your nanny:

• While they are taking the kids to school
• Carrying out a task away from but connected to your home

The benefit of WorkCover in Queensland is that it only costs $25 per year (excl GST) for household employers.

4.   Western Australia

WorkCover WA is the government agency responsible for regulating the Workers’ Compensation scheme.

You can get insurance through a “WorkCover WA Approved Insurer.” You could also use the services of an insurance broker to negotiate for you.

5.   Tasmania

Here, employers have to take out a Workers' Compensation insurance policy with a licensed insurer. WorkCover Tasmania has a list of these available.

It is possible to self insure against Workers Compensation claims. This usually only applies to large businesses, however.

6.    South Australia

SafeWork SA enforces the state’s work health and safety laws.

ReturnToWorkSA is responsible for providing work injury insurance. It also regulates the South Australian Return to Work scheme.

7.   Northern Territory

NT WorkSafe operates a no-fault workers' rehabilitation and compensation scheme. If a worker suffers an illness or injury while at work they may be eligible for entitlements like: