If you suffer an injury while working across state borders, which workers' compensation scheme you are covered by depends on your "state of connection". This is a three-step legal test which examines where you usually work, where you're usually based and where your employer's main business operates out of.
It’s incredibly important that you get this process right as each state has different benefits, support services and claim processes. If you lodge your claim with the wrong scheme, you are likely to face delays, have your claim rejected or lose access to entitlements while the correct jurisdiction is determined.
This guide explains how the state of connection test works, what FIFO and interstate workers need to know and the practical steps you should take in order to protect your rights when working across multiple states.
Understanding the State of Connection Test
What determines the workers' compensation scheme for interstate workers?
Queensland law requires the completion of a "state of connection" test to determine which state's workers' compensation scheme you will be covered by. This three-step test is applied consistently across all Australian states and territories to create a uniform national approach.
The test works like this:
- Step 1: Where do you usually work? This is an examination of your regular work pattern with your employer. It includes your entire employment history, even across multiple contracts with the same employer.
- Step 2: Where are you usually based? If Step 1 doesn't identify a clear state, step 2 takes where you regularly live and report for work, as well as the ongoing intentions of both you and your employer, into consideration.
- Step 3: Where is your employer's principal place of business? If the first two steps fail in establishing a connection, your coverage falls under the state in which your employer's main operations are located.
Important exception: if these three steps still can't identify your state of connection and you've suffered an injury, your coverage defaults to the state where the injury occurred (unless you're entitled to compensation under non-Australian laws).
Your Rights and Entitlements
What you're entitled to:
- Single jurisdiction coverage: you only need coverage in one state (your state of connection), and not in multiple states where you work.
- Continuation during temporary assignments: if you're working interstate temporarily (up to 6 months), you generally retain coverage from your home state scheme.
- Historical employment consideration: your entire work history with an employer is taken into consideration, not just your current contract period.
What you must do:
- Report injuries promptly: inform your employer of your injury immediately, preferably in writing. You should do this regardless of which state you were working in when injured.
- Lodge your claim within 6 months: it’s very important that you file a workers' compensation claim within 6 months of the injury date so you protect your entitlements.
- Maintain documentation: keep meticulous records of work locations, rosters, travel arrangements and employment contracts that prove your state of connection.
Common Scenarios and Questions
I'm a FIFO worker based in Queensland who flies to Western Australia for work. Which scheme am I covered by?
Quick answer: if you live in Queensland and your roster home base is Queensland, it’s likely that you're covered by WorkCover Queensland even if your injury happened at a worksite in another state. However, if you’ve chosen to live in Queensland on your off time but your official location is elsewhere, your employment may also be based somewhere else.
What to do:
- Gather evidence like utility bills and lease agreements to document the location of your home base.
- Find and keep copies of your roster. This should show your regular fly-in fly-out pattern and where you're based between shifts.
- Maintain records of where your employer processes payroll and which office manages your employment.
- In the event that your claim is questioned, gather evidence which shows Queensland is your "usual base" despite working interstate.
Important note: a recent landmark case (the Covill case) confirmed that your entire employment history matters in situations such as these, including previous Queensland-based work with the same employer under different contracts.
I was hired in Queensland but my employer has transferred me to New South Wales for 8 months. Am I still covered by WorkCover Queensland?
Quick answer: you probably won’t be covered for the entire assignment. Temporary assignments of 6 months or less typically maintain your Queensland coverage, but any assignments which last for more than 6 months will require a full state of connection test.
What to do:
- Consult with your employer to confirm whether the transfer is genuinely temporary and there is an expected return date for work in Queensland.
- Review your employment contract and any transfer documentation to find evidence of assignment duration and the terms of the transfer.
- If the assignment is permanent or indefinite, apply the three-step state of connection test to determine your coverage state.
- Ensure your employer updates their workers' compensation insurance to cover you in the correct jurisdiction.
Important note: during and after the pandemic, certain longer "temporary" arrangements have been considered as temporary if there's a clear expectation of returning to the original state, although this will depend on the specific circumstances.
My employer's head office is in Queensland, but I've always worked at their Sydney branch. Which scheme applies?
Quick answer: in this case, you’re likely covered by NSW instead of Queensland. The state of connection test prioritises where you usually work (Step 1) over where your employer's head office is located (Step 3).
What to do:
- Find proof that you've consistently worked at the Sydney location throughout your employment.
- Gather evidence showing your regular work pattern, including timesheets, work location records and email signatures.
- Note that your employer's head office location only becomes relevant if Steps 1 and 2 of the test don't identify a clear state.
Important note: many employers incorrectly assume that the location of their head office determines coverage for all employees, which creates coverage gaps for interstate workers.
I was injured while travelling between Queensland and Victoria for work. Which scheme covers my injury?
Quick answer: your coverage will depend on your state of connection instead of where the injury occurred. If you usually work in Queensland, WorkCover Queensland will provide you cover for injuries sustained during work travel.
What to do:
- Report the injury to your employer as soon as possible. Include details of where it occurred and the work-related purpose for your journey.
- Find proof that the trip was a required part of your employment (work-related travel is covered).
- Use the state of connection test to determine your home jurisdiction.
- Keep all travel records, itineraries and documentation showing the work-related purpose of your interstate trip.
Important note: work-related travel injuries are covered by your state of connection scheme, including travel to and from interstate work locations.
I've worked for the same employer in multiple states over several short-term contracts. How is my state of connection determined?
Quick answer: your entire employment history matters, not just your current contract.
What to do:
- Compile records of all the contracts you have/have had with your employer, including locations, dates and the work you performed.
- Document any patterns which demonstrate a primary connection to one state, despite you working elsewhere.
- Gather evidence of "expectation of further work" in your connected state, such as ongoing communications and roster patterns.
- Consider seeking legal advice before lodging your claim to ensure you file the initial claim under the correct jurisdiction.
Important note: before the Covill decision, insurers would often only consider the current contract period. This landmark case changed the approach to benefit workers with multi-state employment histories.
My employer is covered by Comcare, not a state scheme. Does this affect my claim?
Quick answer: it significantly affects your claim. Comcare is the federal workers' compensation scheme which covers Commonwealth government employees and certain private employers who choose to self-insure federally. Comcare claims follow different rules and processes than state schemes.
What to do:
- Confirm whether your employer holds Comcare coverage or state-based WorkCover insurance.
- If they work with Comcare, your claim will be subject to federal legislation rather than state-based workers' compensation laws.
- Keep in mind that Comcare coverage usually only applies when your employer operates across multiple jurisdictions with federal scheme approval.
- Seek advice from lawyers experienced with Comcare claims as the processes and entitlements differ significantly from state schemes and errors can affect your compensation.
Important note: the majority of Queensland private sector employers use state-based WorkCover rather than Comcare. Comcare is relatively uncommon outside government agencies and large multi-jurisdictional employers.
Step-by-Step Process for Interstate Worker Claims
- Report your injury to your employer immediately: notify your supervisor or manager as soon as you can, preferably in writing via email or text so you can keep a record if it.
- Seek medical attention and ensure documentation: visit a doctor promptly and explain the injury is work-related. Request copies of all medical reports and ensure they show the injury’s connection to your employment.
- Determine your likely state of connection: apply the three-step test and gather supporting evidence for your assessment.
- Lodge your claim with the identified jurisdiction: file your workers' compensation claim with the insurer for your state of connection within 6 months of injury. If you are uncertain about which, file with your most likely jurisdiction and seek clarification.
- Respond promptly to insurer requests: provide all requested documentation, attend any medical assessments and maintain constant communication with the claims manager. Keep copies of everything you submit.
- If jurisdiction is disputed, seek determination: if the insurer rejects your claim based on jurisdiction, request a formal determination or seek review through the relevant workers' compensation authority.
- Consider common law options if you have a permanent impairment: once you reach maximum medical improvement, determine whether you are eligible for lump sum compensation.
Documents you'll need:
- Employment contracts and position descriptions: these show where you were working, reporting arrangements and the terms of your employment. If you have multiple contracts with the same employer, retain them so you can demonstrate your work history.
- Rosters, timesheets and work schedules: these are especially important for FIFO workers as they prove where you usually work and your rotation patterns. If possible, ensure you include documentation showing your base location between work periods.
- Travel records and accommodation bookings: things like flight itineraries, receipts for accommodation and travel allowances demonstrate where you've worked and the temporary or permanent nature of your interstate assignments.
- Medical reports and injury documentation: all medical records from treating doctors, specialists and diagnostic tests. Ensure that these reports clearly show the link between your injury and your work activities.
- Payslips and tax documents: these are important because they demonstrate which state processed your payroll and where tax was paid, providing evidence of your employment's administrative connection.
- Email and written communications: any correspondence about the location of your work, the duration of your assignment and expectations of future work in particular states will help support your state of connection claim.
When to Seek Legal Advice
In almost every single case, your best course of action is to seek legal advice as early as possible. This is especially important if:
- You're uncertain about the state's workers' compensation scheme you’re covered by, particularly if you've worked in multiple states for the same employer or recently transferred to another state.
- Your initial claim has been rejected because of jurisdictional issues, or two different state insurers are disputing which one should cover you.
- You're a FIFO worker who suffered an injury at a remote site not in your home state, and your employer or insurer is questioning who should provide your coverage.
Early advice is important as it helps you:
- Understand your full rights and entitlements under the correct jurisdictional scheme, which vary significantly between states.
- Access rehabilitation and support services sooner by ensuring your claim is lodged with the correct insurer and without suffering delays from jurisdictional disputes.
- Protect your compensation claim from common pitfalls like missed deadlines, inadequate evidence and accepting settlements under the wrong scheme.
Key Takeaways
Remember these essential points:
- The "state of connection" test determines which workers' compensation scheme covers interstate workers, not simply where an injury occurs.
- Workers who are temporarily assigned to interstate work (less than 6 months) generally keep their home state coverage. Assignments exceeding this length will require the full three-step test.
- FIFO workers are typically covered by the scheme in their home base state, even if they’re injured while working at remote interstate sites.
- Your entire employment history with an employer matters when determining state of connection, not just your current contract.
- Always report injuries to your employer immediately and lodge claims within 6 months, regardless of which state you're working in.
- Seek legal advice at the earliest opportunity.
Get Help Now
If you're an interstate worker who has suffered an injury and you're uncertain which workers' compensation scheme applies to you, seeking legal advice as early as possible will help you understand your rights, access the medical treatment and rehabilitation you need and ensure you get the compensation you are entitled to.
Jurisdictional disputes can significantly delay your claim and access to benefits, so acting early ensures you're claiming under the correct scheme from the beginning of the process.
Contact Smith's Lawyers today for a free, no-obligation consultation with lawyers experienced in cross-border workers' compensation claims under our No Win, No Fee, No Catch® promise.
You don't pay unless your claim succeeds, so call us on 1800 960 482 or use the form below to have our team contact you at a convenient time, and we'll assess your situation, determine your state of connection and guide you through the claims process in the correct jurisdiction.
