There appears to be a lot of confusion relating to workcover requirements for business owners who operate through trusts. Workcover provides insurance for employees who are injured at work. Premiums are paid based on wages paid. However many business owners operate through a trust and are paid a trust distribution rather than a wage. So are the covered and do they need to include an amount as “wages” in workcover premium calculation.

The answer is further complicated by whether the trust has individuals or a company as trustee.

Where the trustee is an individual and the business owner receives distributions, not wages, the owner will not be covered by workcover and does not need to include a “wage” amount in premium calculation.

Where the trustee is a company, the business owner is covered and should include a “wage” in the premium calculation even if owner is paid by way of trust distribution.

Should you require advice relating to your specific situation, please contact us.

 

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