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Queensland’s gig worker protections: a step forward but not far enough

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  • Special Counsel

Australia’s gig economy has reshaped the labour market over the past decade, offering flexibility and accessibility to thousands of workers. In Queensland, this shift has been particularly pronounced, with tens of thousands now engaged in app-based work across transport, delivery, care, and freelance services. Yet despite the scale of participation, legal protections for gig workers have lagged behind, especially in relation to workplace injury and compensation.

In May 2024, Queensland took a significant step toward addressing this gap by passing the Workers’ Compensation and Rehabilitation and Other Legislation Amendment Act 2024. The Act creates a framework for extending workers’ compensation coverage to gig workers, but it stops short of delivering immediate protection. Coverage will only apply once further regulations are enacted, and only to those workers and platforms prescribed under federal instruments such as minimum standards orders.

This reform is a critical milestone, but it is only the beginning. To make the promise of protection a reality, Queensland must now grapple with the practical challenges of implementation. That includes determining how premiums should be calculated across a diverse and decentralised workforce, designing flexible and portable insurance policies, and adapting administrative systems to accommodate a new class of worker. Without these structural reforms, the legislative framework risks remaining a hollow gesture.

The following analysis explores the financial modelling behind gig worker inclusion, outlines the statutory benefits at stake, and examines the key administrative considerations, from premium rate variability to policy design and scheme integration, that must be addressed to ensure meaningful and equitable coverage

 

Legislative Changes: A Framework Without Immediate Coverage

In May 2024, the Queensland Parliament passed the Workers’ Compensation and Rehabilitation and Other Legislation Amendment Act 2024, a reform aimed at extending workers’ compensation protections to gig workers in the transport and delivery sectors. However, the Act does not automatically grant these protections. Instead, it establishes a framework that allows for future inclusion of gig workers under certain conditions.

Key Legislative Changes:

Section 11 of the Workers’ Compensation and Rehabilitation Act 2003 was amended to enable the government to prescribe certain gig workers and platforms as ‘workers’  for the purposes of the Act. This can occur in response to instruments made by the Fair Work Commission, such as minimum standards orders or collective agreements.

Individuals and employers however can only be prescribed if they are a ‘regulated worker’ or ‘regulated business’ to whom a minimum standards order, minimum standards guideline or collective agreement made under the Fair Work Act 2009 (Cth) (FW Act) applies.

These provisions do not provide any coverage of gig workers under the scheme unless a regulation is made.
These provisions commenced on 27 September 2024, following a proclamation by the Governor.

Who Are Queensland’s Gig Workers?
According to the McKell Institute’s 2023 Tough Gig report, around 250,000 Australians are engaged in app-based gig work, with Queensland home to a significant and growing proportion of them.

These workers are:

  • Predominantly male (around 70%)
  • Often recent migrants
  • Earning, on average, well below minimum wage, especially in delivery services
  • Working long hours – many exceeding 40 hours per week just to stay afloat

Gig worker numbers in Queensland are not accurately known, however the Office of Industrial Relations has estimated in FY 2024 there were around 27,351 gig workers. The dominant industries include: transport, aged and disability care, and food delivery.

The Safety Crisis

The McKell Institute’s research reveals a troubling pattern: gig work is dangerous, isolating, and unprotected. Over 1,000 transport and delivery workers were surveyed. Here’s what they said:

Key Findings on Safety and Injury (McKell Institute, Tough Gig, 2023):

  • 33% have experienced a physical injury while working
  • 62% have lost income due to sickness or injury
  • 55% have faced abusive or threatening customers
  • 51% felt pressured to take risks, such as speeding or unsafe riding
  • 50% reported work-related stress or anxiety

 

Why This Reform Matters

These numbers aren’t just statistics – they reflect lives disrupted, families left without income, and workers injured without recourse.

Until recently, a food delivery rider hit by a car or a rideshare driver assaulted on the job had nowhere to turn for support – no sick leave, no wage protection, no workers’ compensation. They were effectively invisible to the safety net.

The recent legislative amendments in Queensland lay the groundwork for change, but they do not yet provide the necessary protections. Gig workers remain vulnerable, and the promised safety net is still out of reach.

Businesses in Queensland that employ staff bear significant administrative and financial responsibilities, including payroll tax, workers’ compensation premiums, and adherence to workplace health and safety regulations. In contrast, gig platforms – often owned by international investment firms or corporations – are generally not subject to these obligations. They also frequently repatriate their profits overseas, creating an uneven playing field. This disparity disadvantages Queensland businesses that are committed to ethical practices: providing employment, paying taxes, and ensuring worker welfare.

A recent national survey by QUT and the University of Adelaide indicates a rapid increase in gig work participation, with nearly 140 gig platforms now operating in Australia. Gig workers – predominantly younger individuals and low-income earners seeking supplementary income – currently lack workers’ compensation coverage in Queensland. While some platforms offer limited insurance, these policies often provide minimal income support during periods of incapacity, inadequate assistance for rehabilitation, and limited coverage for return-to-work services. Consequently, the financial burden of injured gig workers often falls upon Queensland Health

What’s Next?

While this legislation is a critical first step, it must be:

  • Implemented promptly, with the government enacting regulations to include gig workers under the workers’ compensation scheme.
  • Supported by national reform, to close similar gaps in other states.
  • Collection of premiums needs to be considered

 

The Detail: Estimating Gig Worker Premiums in Queensland & What else needs to be considered administratively

As policymakers and regulators explore the inclusion of gig workers in Queensland’s statutory workers’ compensation scheme, it is essential to understand both the financial implications and the administrative complexity of such a reform. The following estimates and considerations provide a foundational view of what integration might entail.

Estimated Total Wages

Assuming there are 25,000 gig workers in Queensland, each earning 75% of the Queensland average weekly earnings (AWE), we can estimate their total wages and potential workers’ compensation premiums. These are estimates only as no current data exists in relation to the size of the gig economy.

As of the 2025–2026 financial year, Queensland’s average workers’ compensation premium rate is $1.343 per $100 of wages, after discounts .

  • Average Weekly Earnings (AWE): Approximately $1,800
  • Gig Worker Weekly Earnings: $1,800 × 75% = $1,350
  • Annual Earnings per Worker: $1,350 × 52 weeks = $70,200
  • Total Annual Wages for 25,000 Workers: $70,200 × 25,000 = $1,755,000,000

This wage estimate provides a useful baseline for calculating premium obligations. It also highlights the scale of the gig economy’s potential contribution to the workers’ compensation scheme, should coverage be extended.

Estimated Premiums (at $1.343 per $100 of wages)

  • Total Premium: ($1,755,000,000 ÷ 100) × $1.343 = $23,569,650

This figure represents the theoretical premium pool that could be generated if gig workers were covered under the current average rate. However, actual premiums would likely vary significantly depending on how gig work is classified and assessed for risk.

 What Statutory Benefits Would Entail

If gig workers were included in Queensland’s statutory workers’ compensation scheme, they would be entitled to the same statutory benefits that traditional workers have today:

  • Medical and Rehabilitation Expenses: Coverage for treatment and recovery
  • Weekly Compensation Payments: A percentage of their earnings during recovery
  • Lump Sum Payments: For permanent impairments
  • Return-to-Work Support: Assistance in reintegrating into the workforce

These benefits would align gig workers with other employees, providing financial and medical support in case of work-related injuries

The inclusion of gig workers would not only offer protection to a vulnerable workforce but also reinforce the principle of universal workplace safety. It would ensure that those injured while performing platform-based work are not left without recourse.

Considerations

The following considerations highlight the core administrative and regulatory issues that must be addressed to ensure any expansion of coverage is both equitable and operationally viable:

  • Premium Rate Variability: Individual premiums can vary based on industry classification and claims history.
  • Policy Structure: Gig workers may require a tailored policy to address the unique nature of their work.
  • Scheme Integration: Incorporating gig workers into the statutory scheme would necessitate regulatory adjustments and administrative considerations.

These considerations underscore the need for a multi-faceted approach. Financial modelling alone is insufficient; structural and legislative reform must accompany any expansion of coverage.

Premium Rate Variability

One of the most complex challenges in extending workers’ compensation coverage to gig workers lies in determining how premiums should be calculated. Unlike traditional employment sectors, which are classified by well-established risk categories, the gig economy encompasses a wide range of activities, each with its own risk profile and operational structure. Applying a uniform premium rate across such a diverse workforce risks distorting the financial integrity of the scheme, therefore the following considerations need to be made:

  • Industry Classification: Workers’ compensation premiums in Queensland depend on the industry’s risk classification. For example, high-risk sectors (construction, manufacturing) pay more than lower-risk ones (office-based work).
  • Gig Work Diversity: Gig work is very diverse – delivery drivers, rideshare drivers, freelancers, cleaners, etc. Each has a different risk profile. A single premium rate might not accurately reflect this.
  • Claims History: Employers or sectors with higher claims pay higher premiums. Because gig workers are often classified as independent contractors, claims history is currently hard to track, making premium calculation difficult.

A new classification system or multiple categories for gig workers might be needed to fairly calculate premiums based on risk and claims experience.

This variability presents a challenge to equitable premium setting. Without granular data and classification, premiums may either overcharge low-risk gig workers or underfund high-risk ones, undermining scheme sustainability. While this has challenges, they would be overcome with insights and stakeholder engagement.

Policy Structure

To effectively extend workers’ compensation coverage to gig workers, the underlying policy framework must reflect the realities of platform-based work. Unlike traditional employment, gig work is characterised by irregular hours, multiple income sources, and frequent transitions between platforms. These features demand a more flexible and responsive insurance model. The following considerations outline key structural elements that would need to be addressed:

  • Tailored Coverage: Gig workers often don’t work fixed hours or for a single employer, so policies need flexibility. For example, coverage should apply per task or gig, or based on declared income rather than fixed wages.
  • Portability: Gig workers move between platforms and jobs. Ideally, coverage should be portable across different platforms or gigs, so they’re always covered.
  • Premium Collection: Collecting premiums from platforms would require new administrative processes.

Designing a policy structure that reflects the fluid nature of gig work is critical. Without portability and flexibility, coverage risks being patchy and ineffective. Moreover, premium collection mechanisms must be streamlined to avoid burdening workers or platforms disproportionately

Scheme Integration

The following considerations explore the practical systems and support mechanisms that must be developed to ensure the scheme is accessible, functional, and fair for gig workers.

  • Administrative Systems: Claims processing systems must adapt to handle a new, possibly large and dispersed claimant group with irregular work patterns.
  • Education and Awareness: Gig workers need to be informed about their rights, how to claim, and benefits available under the scheme. Platforms might have obligations to educate their workforce.
  • Dispute Resolution: Gig workers may require tailored support for disputes related to claims, given their unique employment status and relationship with platforms.

Integrating gig workers into Queensland’s statutory workers’ compensation scheme is complex but achievable. It requires:

  • Developing tailored premium rates and classifications
  • Creating flexible, portable insurance coverage suited to gig work
  • Amending legislation and administrative systems to include gig workers
  • Ensuring education and support for this new class of covered worker

Taken together, these elements form a roadmap for reform. While the financial estimates provide a compelling case for inclusion, the administrative and structural challenges must be addressed in parallel. With thoughtful design and stakeholder engagement, Queensland can lead the way in modernising workers’ compensation for the evolving workforce.

Conclusion

The Tough Gig report gave voice to hundreds of workers across Australia with many of them based in Queensland, whose experiences reflect the growing challenges faced by those in platform-based employment. Their accounts of physical risk, economic insecurity, and limited access to support highlight the structural gaps in current workplace protections.

In response, Queensland has taken a significant step by establishing a legislative framework to extend workers’ compensation coverage to gig workers. This move signals a recognition of the evolving nature of work and the need for inclusive safety nets. However, until the framework is operationalised through regulation, gig workers remain outside the scope of statutory protection.

The path to implementation involves not only legislative action but also administrative reform, stakeholder engagement, and public education. As the gig economy continues to expand, the question is no longer whether reform is needed, but how swiftly and effectively it can be delivered.

 As published in Australian Lawyers Alliance.

References

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