Cross border arrangements commenced from 1 January 2006 to reduce red tape for employers and make it easier to do business by removing the need for the majority of employers to obtain multiple workers compensation policies for workers who are temporarily working interstate.
Workers will also benefit from the greater certainty the changes provide concerning which jurisdiction they are connected to and their specific entitlements.
Similar legislation introduced in all Australian jurisdictions means that the cross border provisions will determine in which jurisdiction employers are to obtain insurance cover for their workers.
Connection is determined by the following series of tests:
A. The State in which the worker usually works in that employment – where they spend the greatest proportion of their working time;
B. If no State is identified by test A, the State in which the worker is usually based for the purposes of that employment – if they spend comparable periods of time in more than one State, is there a single State where they routinely report to in relation to their work;
C. If no State is identified by test A or B, the State in which the employer’s principal place of business in Australia is located – typically the address registered on the Australian Business Register in connection with the employer’s ABN.
Once the ‘State of Connection’ is determined, a worker may work temporarily for the same employer under the same term or contract of employment in another State or Territory.
These arrangements do not necessarily mean that every employer will only require one policy of insurance in one State for all their workers, as they may have some workers with a NSW State of connection and others connected with another jurisdiction.