On 1 January 2007, changes to section 6 of the Workers Rehabilitation and Compensation Act 1986 regarding territorial application of the Act came into force. The amendments put in place a nationally endorsed model for territorial coverage by all schemes in Australia, ensuring that:
- employers only need to register each worker in one scheme; and
- every worker is covered by a scheme (no worker falls through the cracks).
The amendments introduce a new four-point test to determine a worker’s state of connection, i.e. the state or territory in which an employer should pay levy in regard to a worker and in which a worker will be covered in the event of an injury.
To assist employers and claims decision-makers in understanding the new territorial test and how to apply it, WorkCover has developed a Guide to cross border workers compensation provisions booklet. The Guide explains the four-point test in more detail, gives important information to employers on how to apply the test, and contains several industry-specific examples to illustrate how the new test operates.
For further information on territorial issues or for a hard copy of the booklet please contact us.