The Answer
Employer-funded, compulsory
All employers must have workers comp insurance. If you're injured at work, it covers medical treatment, rehabilitation, lost wages, and lump sum payments for permanent impairment.
What Workers Comp Covers
| Covered | Detail |
|---|---|
| Medical expenses | Hospital, GP, specialist, physio, psychology — all related to the work injury |
| Lost wages | Typically 95% of pre-injury earnings for the first 13 weeks, then stepping down |
| Rehabilitation | Return-to-work programs, retraining, workplace modifications |
| Permanent impairment | Lump sum payment if you're left with a permanent disability |
| Death benefits | Lump sum and ongoing payments to dependants |
How to Claim
- Report the injury to your employer as soon as possible
- See a doctor and get a workers compensation medical certificate
- Your employer lodges the claim with their insurer
- The insurer assesses and accepts (or disputes) the claim
- Payments begin — medical expenses are usually covered from the start
State Systems
Workers comp is administered by each state separately — the rules, benefit levels, and dispute resolution processes vary. Contact your state's workers compensation authority if you have questions or if your claim is disputed.
Your Rights
Your employer cannot fire you because you made a workers comp claim. If they do, contact Fair Work or your state's workers compensation authority. You have the right to choose your own doctor for treatment.
Frequently Asked Questions
Is workers compensation in australia free?
All employers must have workers comp insurance. If you're injured at work, it covers medical treatment, rehabilitation, lost wages, and lump sum payments for permanent impairment.
What Changed
Apr 2026
Content verified