The Queensland Government has passed new legislation through State Parliament that changes the definition of a worker for workers’ compensation purposes.

The new legislation, which comes into effect on 1 July, aligns the worker definition with the PAYG test applied under taxation laws.

The new definition of worker is ‘a person who works under a contract and, in relation to the work, is an employee for the purpose of assessment for PAYG withholding under the Taxation Administration Act 1953 (Cwlth), schedule 1, part 2-5’. This applies to a person for whom PAYG tax instalments are required or would be required to be withheld by their employer.

Examples of individuals no longer covered for workers compensation are those who:

  • supply and operate their own plant, such as earthmoving equipment or trucks as part of their contract. (e.g. bob cat, back hoe, prime movers, taxi trucks, cement trucks, tow trucks)
  • work mainly / substantially for labour only, quote for the job, provide their tools of trade, rectify defects at their own expense, subcontracts / employs labour
  • have a personal services business determination (PSBD) from the ATO.