What is workers’ compensation?

Workers’ compensation is a type of insurance that provides financial protection for employees who suffer a work-related injury or illness. It covers medical expenses, lost wages, rehabilitation, and, in some cases, lump sum payments for permanent impairment. In Tasmania, employers are legally required to have workers’ compensation insurance to ensure employees receive the necessary support in case of workplace accidents.

Who is eligible for workers’ compensation in Tasmania?

Most employees in Tasmania are covered under the Workers Rehabilitation and Compensation Act 1988. This includes full-time, part-time, casual, and seasonal workers. Some contractors may also be eligible if they are deemed to be “workers” under the Act. Self-employed individuals and sole traders are generally not covered unless they take out their own policy. If you’re unsure about your eligibility, it’s best to seek advice or check with WorkSafe Tasmania.

What types of injuries or illnesses are covered under workers’ compensation?

Workers’ compensation covers injuries and illnesses that arise out of, or in the course of, employment. This includes:

• Physical injuries, such as fractures, sprains, and back injuries.
• Repetitive strain injuries (RSI) from tasks like lifting, typing, or using machinery.
• Occupational illnesses, such as respiratory diseases from exposure to hazardous substances.
• Psychological conditions, including work-related stress, anxiety, or PTSD, provided they are linked to employment.
• Aggravation of pre-existing conditions, if work has significantly contributed to worsening an existing injury or illness.

How do I lodge a workers’ compensation claim?

If you have suffered a work-related injury or illness, follow these steps to lodge a claim:

1. Report the Injury – Notify your employer as soon as possible and ensure the incident is recorded in the workplace injury register.
2. Seek Medical Treatment – Visit a doctor and obtain a Workers’ Compensation Medical Certificate.
3. Complete a Workers’ Compensation Claim Form – Your employer should provide this form, or you can access it via WorkSafe Tasmania.
4. Submit the Claim – Give the completed claim form and medical certificate to your employer, who will forward them to their insurer.
5. Await Processing – The insurer will assess your claim and notify you of the outcome, usually within 28 days.

If your claim is accepted, payments for wages and medical expenses will commence. If denied, you have the right to seek a review.

What benefits can I receive under workers’ compensation?

If your claim is accepted, you may be entitled to:
✔ Weekly Payments – A percentage of your pre-injury earnings while you recover.
✔ Medical & Rehabilitation Expenses – Costs related to doctor visits, hospital stays, medications, physiotherapy, and other approved treatments.
✔ Return-to-Work Support – Programs to help you transition back to work safely.
✔ Lump Sum Payments – If you suffer a permanent impairment, you may be eligible for a one-time compensation payment.
✔ Death Benefits – In the unfortunate event of a fatal workplace accident, financial support is available to dependents.

The exact benefits depend on the severity of the injury and your specific circumstances. Your employer’s insurer will provide more details once your claim is processed.

What are my responsibilities as an employer in Tasmania?

As an employer in Tasmania, you have legal obligations under the Workers Rehabilitation and Compensation Act 1988 to ensure the safety and wellbeing of your employees. Your key responsibilities include:

• Providing workers’ compensation insurance – You must have a valid workers’ compensation policy that covers all eligible employees.
• Ensuring a safe workplace – Implement safety measures to minimise the risk of workplace injuries.
• Reporting workplace injuries – If an employee is injured, you must record the incident and inform your workers’ compensation insurer as soon as possible.
• Facilitating return-to-work programs – Assist injured workers in returning to their job safely through rehabilitation and modified duties if necessary.
• Cooperating with claims processing – Provide all necessary information to the insurer to ensure a smooth claim process.

Failing to meet these obligations can result in penalties, so it’s crucial to stay compliant.

Do I need to provide workers’ compensation for casual or part-time employees?

Yes. Under Tasmanian law, workers’ compensation insurance must cover all employees, including full-time, part-time, casual, and seasonal workers.

However, some independent contractors may not be considered employees for workers’ compensation purposes. If you engage contractors, it’s important to determine whether they are classified as a “worker” under the Act, as you may still have obligations towards them.

If you’re unsure about your coverage requirements, consulting your insurer or WorkSafe Tasmania is recommended.

How can I reduce workers’ compensation premiums?

Workers’ compensation premiums are based on factors like the size of your payroll, your industry risk level, and your claims history. You can take proactive steps to reduce your premium costs:

• Improve workplace safety – Implement strict safety protocols and provide regular staff training to prevent injuries.
• Manage claims effectively – Early intervention and return-to-work programs can help reduce claim costs.
• Maintain a low claim rate – A good safety record and minimal claims can lead to lower premiums over time.
• Work with an experienced insurance broker – A broker can help you find the best policy for your business needs and advise on premium reduction strategies.

Investing in workplace safety not only protects employees but also keeps your business financially secure.

Can I choose my own doctor for treatment?
Yes, in Tasmania, injured workers have the right to choose their own treating doctor. When seeking medical attention for a work-related injury or illness, ensure that your doctor is aware that the injury is work-related. Your doctor will provide you with a Workers’ Compensation Medical Certificate, which is required when lodging a claim.

However, your employer or their insurer may request an independent medical assessment with a different doctor. You must attend these assessments if required, but your primary care remains with your chosen doctor.

How long will it take to process my claim?
Once you submit a Workers’ Compensation Claim Form along with a Workers’ Compensation Medical Certificate, your employer’s insurer has 28 days to either accept or deny your claim.

During this time, the insurer may conduct investigations, request additional medical reports, or seek further details from your employer. If the claim is accepted, payments for lost wages and medical costs should begin shortly after approval. If denied, you have the right to appeal the decision.

What happens if my claim is denied?
If your workers’ compensation claim is denied, you should first review the insurer’s reasons for rejection. Common reasons include insufficient evidence, disputes over whether the injury is work-related, or administrative issues with the claim form.

You can challenge a denial by:

• Requesting a reassessment from the insurer with additional medical evidence.
• Seeking assistance from WorkSafe Tasmania or a legal advisor.
• Lodging a dispute with the Workers Rehabilitation and Compensation Tribunal if you cannot resolve the issue with the insurer.

Time limits apply for appeals, so it’s important to act promptly.

Can I return to work while receiving workers’ compensation benefits?
Yes, returning to work is encouraged if you are medically fit to do so. Tasmania has return-to-work programs that allow injured employees to perform modified duties or work reduced hours while recovering.

Your doctor will assess your ability to return to work and may provide a Return-to-Work Plan outlining any restrictions or necessary adjustments. If your employer can accommodate these conditions, you may return on a graduated basis while still receiving compensation for any lost wages due to reduced hours.

Are there specific requirements for high-risk industries like construction or mining?
Yes, high-risk industries such as construction, mining, and manufacturing have additional workplace safety and workers’ compensation considerations. Employers in these sectors must:

• Maintain strict safety protocols – Compliance with WorkSafe Tasmania’s safety standards is mandatory to minimise workplace risks.
• Provide appropriate training and PPE – Workers must be trained in hazard management and supplied with personal protective equipment (PPE).
• Have site-specific risk management plans – Industries like mining and construction require documented risk assessments and safety plans.
• Consider industry-specific insurance options – Some insurers offer tailored policies that provide additional protection for workers in hazardous roles.

Employers in these sectors must ensure they stay up to date with industry regulations to maintain compliance and protect their workers.

What if I’m injured while working remotely or from home?
Workers’ compensation in Tasmania can cover injuries sustained while working remotely, including working from home. However, the injury must be directly related to employment activities.

For example, injuries from tripping over work equipment or ergonomic issues from prolonged desk work may be covered. However, incidents unrelated to work, such as falling while taking a personal break, may not qualify.

To ensure coverage while working remotely, employers should:

• Establish clear work-from-home policies that define working hours and responsibilities.
• Encourage proper workstation setup to reduce injury risks.
• Maintain communication with remote employees to support workplace safety.

If you are injured while working remotely, you should report it to your employer as soon as possible and seek medical advice to determine eligibility for a claim.

How has workers’ compensation law changed recently in Tasmania?
Workers’ compensation laws are updated periodically to improve worker protections and clarify employer responsibilities. Some recent changes in Tasmania include:

• Increased mental health support – Psychological injuries such as work-related stress or PTSD are now recognised more clearly in claims.
• Revised premium calculations – Adjustments to how premiums are calculated, particularly for high-risk industries.
• Stronger return-to-work policies – Greater emphasis on helping injured workers reintegrate into the workplace as soon as they are medically able.

For the latest updates, employers and employees should refer to WorkSafe Tasmania or consult with their insurance broker to ensure compliance with current laws.

What is the role of WorkSafe Tasmania in workers’ compensation?
WorkSafe Tasmania is the government body responsible for overseeing workplace health and safety, including the workers’ compensation system. Its key roles include:

• Regulating and enforcing safety laws – Ensuring that workplaces comply with occupational health and safety (OHS) standards.
• Providing guidance on claims – Offering resources for workers and employers to understand their rights and responsibilities.
• Handling disputes – Assisting with disputes between workers, employers, and insurers.
• Promoting workplace safety initiatives – Running education programs and safety campaigns to reduce workplace injuries.

Employers and employees can contact WorkSafe Tasmania for support on compliance, claims, and workplace safety improvements.

What are common mistakes to avoid when lodging a workers’ compensation claim?
Filing a workers’ compensation claim correctly can help avoid unnecessary delays or rejections. Common mistakes include:

• Failing to report the injury immediately – Delays in notifying your employer can raise doubts about the legitimacy of the claim.
• Not seeking medical treatment – A workers’ compensation claim requires medical documentation to verify the injury.
• Incomplete or inaccurate claim forms – Missing information or errors can slow down the claims process.
• Not following medical advice – Ignoring your doctor’s recommendations may affect your claim and recovery.
• Not keeping records – Keeping a copy of all medical reports, claim forms, and employer communications ensures you have evidence if a dispute arises.

Taking these steps will help ensure a smoother claims process.

How does workers’ compensation impact my tax obligations?
Workers’ compensation benefits are not considered taxable income in Australia. This means that:

• Weekly compensation payments are tax-free and do not need to be declared as income on your tax return.
• Lump sum payments for permanent impairment are also tax-free.
• Superannuation contributions may not be paid by your employer while you are receiving workers’ compensation, which could impact your retirement savings.

However, if you return to work on reduced hours and receive both wages and compensation payments, the wages you earn will still be taxable. It’s best to check with an accountant to understand your personal tax situation.

Can I receive workers’ compensation if I’m injured while commuting?
In Tasmania, journey claims (injuries that occur while travelling to or from work) are not generally covered under workers’ compensation, unless:

• Your employer specifically requires travel as part of your job – For example, if you are required to visit clients or attend meetings off-site.
• You are on a work-related trip – If you’re travelling for work purposes and are injured, the claim may be valid.
• Your employer provides transport – If the injury happens while using transport arranged by your employer, you may be eligible.

For standard commutes between home and work, alternative options such as personal injury insurance or motor vehicle accident compensation may apply.

What support is available for mental health claims under workers’ compensation?
Workers’ compensation in Tasmania recognises work-related psychological injuries, such as stress, anxiety, and PTSD. To qualify for compensation:

• The mental health condition must be primarily caused by work (e.g., workplace bullying, exposure to traumatic events, or excessive work demands).
• A doctor must diagnose the condition and provide a Workers’ Compensation Medical Certificate.
• Claims for reasonable management action (such as performance reviews or disciplinary action) are not typically covered unless mismanaged.

If accepted, mental health claims may cover medical treatment, counselling, lost wages, and rehabilitation services to help employees return to work.