Workers compensation insurance in the ACT: a guide for employers
Every employer in the ACT must hold a workers compensation policy covering its workers, bought from one of five private insurers approved to write it in the territory. WorkSafe ACT regulates the scheme but doesn't sell cover, and no official premium rates are published: each insurer sets its own price based on your industry, wages, claims history and number of employees.
The ACT is strict on uninsured employers. WorkSafe ACT can issue a default notice giving you ten business days to take out a policy, recover double the premium you avoided for up to five years, and ultimately order you to stop trading. This page explains the approved insurers, who counts as a worker, and how the Default Insurance Fund protects workers whose employer didn't insure.
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General advice only. It doesn't consider your circumstances. Read the PDS and TMD before you decide.
| Australian Capital Territory | |
|---|---|
| Regulator | WorkSafe ACT |
| Who insures | 5 approved private insurers; 7 licensed self-insurers (large employers) |
| Can you choose your insurer? | Yes. Contact an approved insurer directly or use a broker |
| Who must insure | Every employer in the ACT, for all its workers (limited exemptions such as licensed self-insurers) |
| Wage threshold | None |
| How premiums are set | By each insurer, considering industry type, claims history, wages bill and number of employees; no official rates are published |
| Levy | Insurers must show the Default Insurance Fund levy on every premium notice |
| Sole traders and partners | Not workers under the scheme, so not covered for their own injuries |
| Penalty for not insuring | Offences of up to 250 penalty units, and recovery of double the avoided premium for up to 5 years |
| Safety net | The Default Insurance Fund pays claims when an employer was uninsured, then recovers from the employer |
| Law | Workers Compensation Act 1951 |
Who sells workers compensation insurance in the ACT
The ACT scheme runs through private insurers approved to write workers compensation in the territory. WorkSafe ACT lists five, and it says that if you need a policy you should contact an approved insurer directly. You can also use a broker. Zurich surrendered its ACT licence in 2022, so older lists you find online may be out of date.
Some large employers are licensed to self-insure instead. WorkSafe ACT's list includes Brickworks, Coles Group, Holcim (Australia) Holdings, Pacific Formwork Employment, the University of New South Wales, Wesfarmers and Westpac. For a small business, an approved insurer is the only route.
| Insurer (as listed by WorkSafe ACT) |
|---|
| Allianz Insurance |
| Guild Insurance Ltd |
| QBE Insurance |
| CGU Workers Compensation |
| GIO Workers Compensation |
Who you must insure
WorkSafe ACT's rule is that an employer in the ACT must have a workers compensation policy to cover its workers. The exemptions in section 147 of the Act are narrow: licensed self-insurers, some cross-border and joint-policy arrangements, and employers prescribed by regulation. There's no small-wages exemption.
The ACT's definition of worker reaches some contractors. Under section 11 of the Act, a regular contractor who personally does part or all of the work can be deemed your worker, although an executive officer of a corporation isn't. If you regularly engage the same individuals on contract, check whether they fall in, and tell your insurer.
How premiums are set in the ACT
Unlike WA and Tasmania, the ACT doesn't publish recommended or suggested premium rates. WorkSafe ACT says approved insurers consider many factors, including your industry type, claims history, wages bill and number of employees. Because each insurer weighs those differently, quotes for the same business can vary, which makes it worth asking more than one insurer or using a broker.
Every premium notice must also show the Default Insurance Fund levy, which funds the safety net described below. It is set outside the insurer's control and appears as a separate item.
Sole traders, partners and directors
WorkSafe ACT is explicit that a person who is a sole trader or in a partnership isn't a worker under the scheme, so workers compensation won't pay for your own injury. If you work for yourself, you need your own cover: see insurance for sole traders. Whether a company can cover its working directors is a question to put to the insurer; WorkSafe ACT's guidance doesn't set out an optional director cover the way WA's does.
What happens if you don't insure
The ACT sets out a staged process in section 147 of the Act. If WorkSafe ACT finds you uninsured, it can issue a default notice giving you ten business days to take out a policy. If you don't, a second ten-day notice follows, and then a notice requiring you to stop carrying on business, effective after five business days. When a policy is taken out after a default notice, at least 30% of the premium has to be paid up front.
The money is significant. Offences carry penalties of up to 250 penalty units, and under section 149 the regulator can recover double the avoided premium, counted back up to five years.
The Default Insurance Fund
The Default Insurance Fund is the ACT's safety net. If a worker is injured while working for an employer that didn't hold the required policy, the Fund can pay the worker's compensation, so the worker isn't left without support. ACT Treasury says the Fund is then entitled to recover up to three times the compensation paid and the premium from the uninsured employer. For an employer, that is the strongest reason of all not to let cover lapse.
Workers compensation in other states and territories
Each state and territory runs its own scheme, and an employer registers where its workers are based. If you employ people in more than one state, check each scheme, or compare workers compensation insurance in every state.
General advice only. This information doesn't take into account your objectives, financial situation or needs. Consider whether the product is right for you and read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) before you decide. We don't compare every product in the market, and we may earn a commission if you take up a product through our links.
What to watch for
- Keep your policy current. A default notice gives only ten business days to fix a lapse.
- Check whether regular contractors who do the work themselves are deemed workers under section 11.
- Compare more than one approved insurer: with no published rates, prices for the same business can differ.
- Look for the Default Insurance Fund levy on your premium notice; it's a separate line, not an insurer fee.
Common questions
Is workers compensation compulsory in the ACT?
Yes. Every employer in the ACT must hold a workers compensation policy covering its workers, with limited exemptions such as licensed self-insurers.
Who are the approved workers compensation insurers in the ACT?
WorkSafe ACT lists five: Allianz Insurance, Guild Insurance, QBE Insurance, CGU Workers Compensation and GIO Workers Compensation. Check WorkSafe ACT's list before you buy, as it can change.
How much does workers comp cost in the ACT?
There are no official rates. Approved insurers set premiums based on factors including your industry, claims history, wages bill and number of employees, and each premium notice includes the Default Insurance Fund levy.
Are sole traders covered by workers comp in the ACT?
No. WorkSafe ACT says sole traders and people in partnerships aren't workers under the scheme. They need their own personal accident or income protection cover.
What is the ACT Default Insurance Fund?
A safety net that pays compensation to workers injured while working for an uninsured employer. It can then recover up to three times the compensation paid and the premium from that employer.
What is the penalty for not having workers comp in the ACT?
Offences carry up to 250 penalty units, the regulator can recover double the avoided premium for up to five years, and an employer that ignores default notices can be ordered to stop carrying on business.
We are not the scheme
Better Rate Mate is a comparison and information site. We are not a workers compensation insurer, agent or regulator, and this page is general information for employers, not advice. For a policy, a premium or a claim, contact the scheme or a licensed insurer directly. If you have been injured at work, your employer's insurer and the regulator listed above can explain your entitlements.