General factors effecting premium rates

If you're an employer, the workers compensation insurance premium you pay is determined by a number of factors. 

These factors include:

Small businesses exempt from needing a policy

Employers with annual wages less than $7500 are exempt from having a workers compensation insurance policy. Immediately you become aware that your annual wages are likely to exceed $7500 you must contact an insurance agent to take out a policy.


Employers who have workers engaged in activities involving asbestos may be liable for additional premiums.

It is important that employers indicate whether any of their workers in the course of their employment handle, process or manufacture any asbestos-containing products.

It is a legal requirement for the controller of premises to identify all asbestos-containing materials within a workplace, and these materials must be recorded in an asbestos register. A special dust diseases premium adjustment will be applied to the wages of employees exposed to asbestos or who are involved in asbestos handling.

If your worker handle, process or manufacture any asbestos-containing materials you will need to tell your insurance agent so they can calculate your estimated premium.

Contractors, subcontractors and deemed workers

Some subcontractors are also treated as workers and the principal contractor must cover them for workers compensation and declare any payments made to them as wages.

Some other people are classified as deemed workers and you'll also have to include payments to them in your wages bills as well. Schedule 1 of the Workplace Injury Management and Workers Compensation Act 1998 for a comprehensive list.

Call us on 13 10 50 or contact your insurance agent for more information.

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