HIA backs alignment of WorkCover coverage with PAYG tax

Housing Industry Association (HIA) Queensland executive director Warwick Temby says the current approach to deciding who is covered by WorkCover has been an "administrative nightmare" for building contractors.

The HIA has 'strongly endorsed' the Queensland government's decision to line up coverage for Workcover with PAYG tax, with Mr Temby stating that this will make life "much more straightforward" for contractors.

Mr Temby commented that the Tax Office approaches are much clearer and better understood.

"The simplicity of the new approach will also help sub-contractors know whether they have WorkCover coverage from their principal contractor: if the principal is not deducting PAYG from their invoices they will need to have their own insurance cover like any other business."

WorkCover Queensland chair Glenn Ferguson said that their customers have been confused about coverage, with this being the source of many complaints.

"Aligning the definition should make declaring workers and their wages for premium easier for employers," Mr Ferguson said.

WorkCover says the main impact will be in the transport and construction industries, where there are different contracting arrangements. Coverage for the majority of workers - of which are mostly PAYG workers - will be the same.