650 Queensland businesses were recently audited by WorkCover and the findings revealed that uninsured business accounted for approximately 260 claims in 2015, costing the scheme close to $6.5 million.
Additionally the audit revealed 15 per cent of employers did not declare superannuation as part of their assessable wages, 8 per cent failed to declare wages paid to contractors, and 3 per cent were uninsured.
Small businesses in regional and rural parts of the state were more likely to be under-insured or uninsured, a WorkCover spokesperson advised.
Tony Hawkins, WorkCover Queensland CEO, said that although most businesses have an accident insurance policy with the correct premium, non-compliance remains a concern.
He went onto say "Any Queensland business who employs a worker is breaking the law if they don't have a WorkCover Accident Insurance policy. It's never too late to start complying and doing so can reduce the costs should a worker be injured.”
“Uninsured employers who lodge WorkCover claims will be held to account. These businesses will be subject to significant financial penalties, including the cost of the claim which can amount to hundreds of thousands of dollars for severe injuries," said Hawkins.
Hawkins revealed that WorkCover planned on doing more employer compliance audits this year.
If you have any questions regarding WorkCover in QLD or another State please contact Mark Farrugia, National Workers Compensation Manager at Insurance House on email@example.com or 0437 917 315.