A deemed worker may be able to claim workers compensation benefits even though you may not be an employee for tax purposes. For example, if you have an ABN and work exclusively for the deemed employer but have no discretion of the work you perform you may be able to claim workers compensation benefits.
Each claim is determined on its own facts.
The factors that are taken into account to determine whether you are a deemed worker include the following:
- do you wear a uniform
- do you use your own tools
- do you have employees or apprentices
- are you able to subcontract the work to another person
- do you work exclusively for the deemed employer
- do you have any discretion in the work performed for the deemed employer
If a subcontractor works for herself/himself with no employees, workers compensation insurance is not likely required. However, there are some instances where it is needed. If for example a contract for work requires you to have workers compensation insurance or you have workers under your supervision you may need it.