Workers compensation in Queensland
In Queensland the following tests are used to determine if a contractor will be classed as a ‘worker’ and therefore workers compensation obligations apply.
Contractors are taken to be ‘workers’ unless they meet all three of the following criteria:
- the contractor is paid to achieve a specified result or outcome; and
- the contractor provides all of the plant, tools and equipment needed for the job; and
- the contractor is liable under the contract to rectify defects.
If the contractor has a ‘personal services determination’ under the Income Tax Assessment Act 1997 they will not be regarded as a ‘worker’ even if they do not meet all three criteria in test one.
If a contractor does not fall within the definitions at tests one and two, the contractor will still be classed as a ‘worker’ if the following apply:
- the work is not part of a trade or business carried on by the contractor individually or by partnership; and
- the contractor does not subcontract the work; or
- the contractor does not employ a worker; or
- the contractor employs a worker but performs some of the work personally.
Note: The following people are specifically excluded and will not be classed as ‘workers’ in Queensland:
- company directors who work as an employee of the company;
- trustees of a trust who work as an employee of a trust; and
- partners who work as an employee of a partnership.
Sharefarmers in Queensland
In Queensland, sharefarmers are classed as ‘workers’ under workers compensation laws if both of the following apply:
- they do not provide and use farm machinery; and
- they are not entitled to more than one-third of the proceeds under the share farming agreement.