Changes to the definition of "worker" in the
Workers Compensation and Rehabilitation Act 2003
("the Act") commenced on 1 July 2013.
These changes have altered the definition of "worker"
to effectively exclude subcontractors. The changes bring the
definition into line with the definition of "worker"
under the Commonwealth income taxation legislation. Specifically,
the definition of "worker" in Section 11 of the Act has
been amended to be "a person who works under a contract"
and "is an employee for the purpose of assessment for PAYG
withholding" under the Commonwealth income taxation
legislation.
The practical impact of this change is that workers with their
own ABN, such as subcontractors, will be excluded from being able
to make claims for compensation under the Act. A person is
generally considered a subcontractor if:
