It is a common misconception that engaging the services of a labour contractor does not require you to have WorkCover. Due to the confusion in this area, many people simply do nothing about the situation. Fortunately, some decision tools are available on both the ATO and WorkCover websites, and if you're looking at these, just remember a couple of additional points:

  • The decision tool does not apply when you engage a contractor working through a company, partnership or trust
  • If you engage a sole trader individual who is principally being used for labour, then you are required to cover them for superannuation and normally for WorkCover as well.

  • A "General Summary" that will usually apply to most situations is:

    As always, if you are in any doubt as to your particular situation, play it safe and speak to your preferred contact at our office on 5482 2855.