WorkCover WA: Who Needs It, What It Costs and How to Get a Policy
WorkCover WA runs Western Australia's workers compensation scheme, and every WA employer must hold a workers compensation policy covering all its workers, bought from a licensed insurer. The average recommended premium for 2026/27 is 1.931% of wages, up from 1.823% in 2025/26, with a recommended minimum premium of $325. If you're uninsured, you face fines of up to $10,000 per worker plus the premiums you avoided, going back 5 years.
Last fact-checked: 4 November 2026, against WorkCover WA's employer FAQs, compliance page and 2026/27 recommended premium rates. Pay rates, rules and job numbers change; follow the linked source before you act.
Who needs workers compensation insurance in WA?
Every employer with workers. WorkCover WA says you must have workers compensation cover for anyone the law defines as a 'worker', including cover for claims at common law, and that applies regardless of the worker's age.
The definition is broad. It covers:
- full-time workers on a wage or salary
- part-time, casual and seasonal workers
- workers on commission and piece workers
- workers paid 'in kind'
- family members who work in the business
- working directors, if the company chooses to cover them
- contractors and subcontractors, depending on the arrangement (next section)
Signs that someone works under a contract of service include being paid wages, having PAYG tax withheld, working under your supervision and control, set hours, and working only for you. You can't contract out of the obligation. A worker signing an agreement that says they won't claim doesn't remove your liability. A personal sickness and accident policy is not a substitute for a workers compensation policy.
Do you need to cover contractors and subcontractors?
Sometimes. Under the extended definition in the Workers Compensation and Injury Management Act 2023, a contractor can be your worker if they're engaged to do work for your trade or business and are paid for their own manual labour or services.
WorkCover WA's FAQs say an individual is a worker under the extended definition if all of these apply:
- they have contracted with you to do the work themselves
- the work isn't part of a trade or business they regularly carry on in their own name or a business name
- they don't sublet the contract
- if they employ anyone, they still do part of the work personally
Three related rules matter on building sites and in cleaning and labour supply:
- Your contractor's workers. If you contract out work that's part of your normal business, you and the contractor are jointly liable for compensation to the contractor's workers. You can recover the cost from the contractor, so ask every contractor for a current certificate of currency.
- Crews. If one member of a subcontracting team hires, fires and supervises the others, there may be an employer relationship, and that person needs a policy for the team.
- Avoidance arrangements. Requiring a worker to set up their own company to do substantially the same work, so you avoid cover, is an offence. The fine is up to $5,000, and you're still liable if they're injured.
Getting the employee versus contractor line wrong also affects tax, super and Fair Work obligations. Spell out the relationship in writing; our WA employment contract template is a starting point for employees.
Can sole traders and company directors cover themselves?
Generally, no. WorkCover WA says individual workers can't cover themselves for workers compensation, even if they're self-employed and have an ABN.
The exception is a working director of a company: a director who works for the company and is paid for their personal manual labour or services. The company can choose to insure them by applying to the insurer on that basis and declaring the director's remuneration. Once the policy is in place, the working director is treated as a worker. Non-working directors and directors of public companies can't be covered.
How much does WorkCover WA insurance cost?
Your premium is roughly your annual wages multiplied by your industry's premium rate, adjusted by the insurer for your risk. WorkCover WA publishes a recommended rate for every industry class each year. For 2026/27, the average recommended rate is 1.931% of wages, and the recommended minimum premium is $325 for all classes.
The 2026/27 rates apply to policies issued or renewed with a period of insurance starting from 4 pm on 30 June 2026. Here are the rates for common Perth small-business industries, with the recommended premium on $300,000 of wages:
| Industry class | WorkCover code | 2026/27 recommended rate | Recommended premium on $300,000 of wages |
|---|---|---|---|
| Accounting services | 69320 | 0.25% | $750 |
| Computer system design and related services | 70000 | 0.25% | $750 |
| Real estate services | 67200 | 0.34% | $1,020 |
| Takeaway food services | 45120 | 0.99% | $2,970 |
| Hairdressing and beauty services | 95110 | 1.15% | $3,450 |
| House construction | 30110 | 1.46% | $4,380 |
| Cafes and restaurants | 45110 | 1.52% | $4,560 |
| Electrical services | 32320 | 1.66% | $4,980 |
| Pubs, taverns and bars | 45200 | 1.77% | $5,310 |
| Clothing retailing | 42510 | 1.90% | $5,700 |
| Employment placement and recruitment services | 72110 | 2.21% | $6,630 |
| Supermarket and grocery stores | 41100 | 2.24% | $6,720 |
| Child care services | 87100 | 2.35% | $7,050 |
| Aged care residential services | 86010 | 2.39% | $7,170 |
| Plumbing services | 32310 | 2.54% | $7,620 |
| Building and other industrial cleaning services | 73110 | 2.54% | $7,620 |
| Road freight transport | 46100 | 5.40% | $16,200 |
| Carpentry services | 32420 | 5.62% | $16,860 |
WorkCover WA's media statement puts the increase down to higher average claim costs, more claims, projected wage growth and an ATO tax ruling on settlements. The full schedule of every class is in the 2026/27 recommended premium rates PDF.
Worked examples (hypothetical businesses, recommended rates before any insurer discount or loading):
| Business | Declared wages | Rate | Recommended premium |
|---|---|---|---|
| Sam's café in Subiaco (cafes and restaurants) | $420,000 | 1.52% | $6,384 |
| Jo's carpentry crew in Baldivis (carpentry services) | $600,000 | 5.62% | $33,720 |
| A 4-person accounting practice in West Perth | $500,000 | 0.25% | $1,250 |
| A home-based hairdresser with one part-timer | $25,000 | 1.15% | $287.50, so the $325 minimum applies |
Carpentry costs more than 20 times as much per dollar of wages as accounting. That gap reflects claims history, so industry classification is one of the biggest decisions in your premium. If you're hiring tradies, compare the cost against what you'll pay in wages using our carpenter salary guide.
How does an insurer work out your premium?
The insurer starts from the WorkCover WA recommended rate for your industry and adjusts it for your business. WorkCover WA says your insurer will:
- ask for a declaration of the remuneration you expect to pay your workers for the policy period (usually 12 months)
- assign your industry classification. If you run more than one industry at the same location, your predominant industry by gross remuneration applies
- look at risk factors such as your claims history and your safety and injury management policies
- discount or load the recommended rate based on that risk
- adjust the premium after the policy ends, once you declare the remuneration you actually paid
The declarations are approved forms with three sections: general workers, contractors and working directors. WorkCover WA's Remuneration Guidelines decide which payments count as remuneration. It's an offence not to provide a declaration when required, or to give a false one. Shop around: WorkCover WA encourages employers to get alternative quotes when taking out or renewing cover.
How do you get a WorkCover policy in WA?
Contact a licensed insurer, declare your estimated wages, and have the policy in place before your first worker starts.
- Work out your industry class and an honest estimate of the wages (and any contractor and working director payments) for the next 12 months.
- Get quotes from WA's licensed insurers. WorkCover WA's list, as published in April 2026, named Allianz, AAI Limited trading as GIO, Guild Insurance, CGU Workers Compensation, WFI (also CGU), QBE and Zurich. The Insurance Commission of WA covers public authorities only. Check the current list before you buy.
- Take out the policy and keep the certificate of currency. WorkCover WA lists a maximum penalty of $5,000 under its certificate of currency obligation.
- Set up an injury management system. It's compulsory, and WorkCover WA publishes a template.
- Keep your wage estimate realistic as you grow, and declare the remuneration you actually paid when the policy ends.
WorkCover WA's Advice and Assistance Service is on 1300 794 744, 8.30 am to 4.30 pm, Monday to Friday.
What are the penalties for not having workers compensation insurance in WA?
Fines of up to $10,000 per worker, plus an amount equal to the premiums you avoided going back 5 years. If you stay uninsured after a conviction, each further week is a separate offence. These are set by sections 204 and 207 of the Workers Compensation and Injury Management Act 2023, and WorkCover WA notes that corporations may face greater penalties.
The bigger risk is the claim itself. Uninsured, your business pays the statutory benefits if a worker is injured or gets a dust disease, plus legal costs and any common law damages. WorkCover WA's compliance page lists maximum penalties for other employer breaches:
| Obligation | Maximum penalty |
|---|---|
| Be insured and give your insurer the required information | $10,000 per worker |
| Insured employer must give a claim to the insurer | $5,000 |
| Claims on uninsured employers | $5,000 |
| Establish an injury management system | $5,000 |
| Provide a position during incapacity | $10,000 |
| Dismissal of an injured worker | $10,000 |
| Deductions from wages towards compensation (not lawful) | $10,000 |
| Records to be kept by employer | $5,000 |
| Certificate of currency | $5,000 |
| Employer's duty to assist WorkCover WA | $15,000 |
WorkCover WA uses data-matching to find employers without a policy and contacts them by SMS and email. Taking money from a worker towards your compensation liability carries a separate $2,000 penalty.
What do you have to do when a worker is injured?
Pass the claim to your insurer, keep paying the worker once a claim is accepted, and work towards a return to work. Once a claim is accepted, you pay weekly compensation as if the worker were still at work, on the same payday and in the same way as their wages, with pay slips as usual.
- Keep their job open. You must maintain the injured worker's employment for 12 months from the day they become entitled to weekly payments, unless it isn't reasonably practicable to return them to their old job or find alternative work.
- Return to work program. You can ask your insurer to establish and implement it for you.
- Trouble paying? Contact your insurer straight away, and keep a record of when you contacted the worker, the insurer and WorkCover WA.
- Journeys. Injuries on the journey between home and work are normally not treated as arising from employment, though the Act has specific journey provisions.
Does WorkCover WA apply to national system employers?
Yes. The national and WA state industrial relations systems decide your wage and Fair Work rules, not your workers compensation. A Perth Pty Ltd company in the national system needs a WA workers compensation policy just as a sole trader in the state system does.
If you've run a business in another state, don't assume the same arrangements apply. WA has its own Act (the Workers Compensation and Injury Management Act 2023), its own regulator, and recommended rates that WorkCover WA publishes each year. You buy cover from a licensed insurer, and insurers aren't required to charge the recommended rates. For wage rules, our WA state vs national system guide explains which system you're in, and Fair Work (13 13 94) or Wageline (1300 655 266) can help with specific situations.
Hiring in Perth?
Your premium is based on the wages you declare, so build new hires into your estimate. When you're ready to hire, post a job on Jobs In Perth from $29. Hiring on site? Browse trade and construction jobs in Perth or hospitality jobs to see what other employers are offering, or read how to find employees in Perth.
Frequently asked questions
Is WorkCover compulsory in WA?
Yes. Every employer must hold a workers compensation policy from a licensed insurer covering all its workers, including casuals, family members and some contractors.
How much is WorkCover in WA?
The 2026/27 average recommended premium is 1.931% of wages, with a $325 recommended minimum. Common small-business rates run from 0.25% for accounting and IT services to 5.62% for carpentry, and insurers can adjust them.
Do sole traders need WorkCover in WA?
Only if they have workers. A sole trader generally can't cover themselves under workers compensation, even with an ABN.
Do I need workers compensation for subcontractors?
If the subcontractor is paid for their own labour to do work for your business, they may be your 'worker'. You can also be jointly liable for your contractor's employees, so check their certificate of currency.
What is the fine for no workers compensation insurance in WA?
Up to $10,000 per worker, plus an amount equal to 5 years of avoided premiums, and a further offence for every week you stay uninsured after conviction.
Where do I get a WorkCover policy?
From one of WA's licensed insurers, not from WorkCover WA itself. WorkCover WA lists them on its Insurers page.
Sources
- WorkCover WA, Employer FAQs
- WorkCover WA, Compliance activities (employer penalties)
- WorkCover WA, Understanding your insurance premium
- WorkCover WA, Insurers (licensed insurers list)
- WorkCover WA, 2026/27 Recommended Premium Rates (news, 9 April 2026)
- WorkCover WA, Media statement: Recommended premium rates for workers compensation insurance 2026/27
- WorkCover WA, Recommended Premium Rates 2026/27 (schedule, PDF)
- WorkCover WA, Rates, fees and payments
- WA Legislation, Workers Compensation and Injury Management Act 2023 (ss 202, 204, 207, 212, 253)