Workcover – Small employer registration exemption

An employer is exempted from the obligation to register under the Workers Rehabilitation and Compensation (Claims and Registration) Regulations 1999.

There are two categories of exemption

1. Employer not engaged in a trade or business

If,

  • the employer employs one or more persons (the workers) under a contract of service or contracts of service; and
  • the workers are not employed for the purposes of a trade or business carried on by the employer; and
  • the total remuneration payable by the employer to the workers in a calendar year does not exceed $10,200 indexed

the employer is not, in respect of those workers, required to be registered under section 59 of the Act (and the remuneration paid to those workers need not be included in any return provided to WorkCover under section 69 of the Act); and are exempt from the operation of section 46(3) of the Act (the employer excess of paying the first two weeks income maintenance of an injured worker)

For 2009 calendar year the indexed amount is $10,800

2. Employer engaged in a trade or business

If the total remuneration payable in a calendar year by an employer to workers employed by the employer for the purposes of a trade or business carried on by the employer does not exceed $10,200 indexed, the employer

  • is not required to be registered under section 59 of the Act; and
  • not required to include the remuneration paid to their workers in any return provided to WorkCover under section 69 of the Act;
  • exempt from the operation of section 46(3) of the Act (the employer excess of paying the first two weeks income maintenance of an injured worker)

For 2009 calendar year the indexed amount is $10,800

However, if a worker suffers a disability arising from that employment that is determined under the Act to be a compensable disability, the exemption from the requirement to register does not apply in relation to the employer from the day of occurrence of the disability until the end of the financial year in which the disability occurred.

This means if a claim has been determined to be a compensable disability and the employer is engaged in a trade of business, the exemption from the obligation to register does not apply in respect of the period from the occurrence of the disability to the end date of the financial year in which the disability occurred. In this case, an employer must complete and provide to WorkCover an application to register as an employer and pay a levy, being the minimum levy for a particular financial year – for 2008-2009 the minimum levy is $50 plus GST plus OHSW fee*

* not subject to GST.