In the past week numerous businesses have been contacted by WorkCover Queensland and we urge our clients to be prepared and have an appropriate policy in place.
Through sophisticated data matching systems, WorkCover Queensland is working with the Australian Taxation Office (ATO) to identify if a suitable policy is in place for businesses who have reported salary and wage payments.
What is WorkCover Qld?
All employers are required by law to insure all employees with WorkCover Queensland and this has been in place since 1 July 2013. WorkCover is essentially an insurance cover to insure your employees against workplace accidents.
The WorkCover premium is calculated based on your industry and the amount of wages (including super) you pay to your employees each year. The only wages that are excluded from the calculation will be those payments made to directors of a company, trustees of a trust, partners of a partnership and the sole trader of a business.
There is no wages threshold that employers will need to reach before being required to take out a policy for their employees. WorkCover is an employer obligation irrespective of the following factors:
- Type of work performed by the employees
- Amount and frequency of payments to employees
- Place of work being performed
Spouses are included
A spouse of a director who receives a small wage, e.g. performing ad hoc administrative type tasks in a home office, will also be required to be covered under a WorkCover policy.
What you need to do
If you do not have a WorkCover policy and you have employees, you will need to take out a policy to cover the period commencing either 1 July 2013 or the date your business commenced employment. Contact your advisor if you are unsure if you need a WorkCover policy.
Employers who are uninsured may be subject to penalties for unpaid premiums, therefore it is important that you review your insurance coverage.
If you would like to learn more about Labour Hire regulations or need assistance with taking out a policy, please contact our Business Advisory team on (07) 3023 1300.