A practical guide for commercial property managers on contractor injury risk, workers’ compensation, and property owner liability under the Workers Compensation and Injury Management Act 2023 (WA).
Workers’ Compensation — The 2023 Framework
Workers’ compensation in Western Australia is now governed by the Workers Compensation and Injury Management Act 2023. This legislation is designed to protect employees and certain deemed workers who are injured during their work.
The 2023 Act clarifies a crucial point for property managers: workers’ compensation operates within a specific employment or service relationship. It is not a universal safety net for every person on a commercial site.
Key Takeaway
Under the new Act, a property manager is generally not responsible for a contractor’s workers’ compensation if that contractor is operating a genuine independent business.
Who is a Worker Under the New Act?
The 2023 Act defines a worker more clearly than previous laws. An individual is a worker if they:
- Work under a contract of service (traditional employment).
- Work under a contract for the performance of work, UNLESS the work is part of a trade or business they regularly carry on in their own name or business name (the Independent Business Exclusion).
When is a Contractor NOT a Worker?
If a contractor (like a plumber or electrician) is running their own business, uses their own ABN, and takes on work from various clients, they are typically excluded from the principal’s workers’ compensation obligations.
Sole Traders — Where Does the Risk Sit?
Sole traders are independent business operators. Under the current WA legislation, they are responsible for managing their own personal and financial risks, including the risk of injury.
The Independent Business Test
In the 2026 commercial landscape, the risk sits with the contractor if:
- They operate under their own ABN or business name.
- They supply their own tools, equipment, and methods.
- They are engaged for a specific, one-off task.
- They work autonomously without your day-to-day supervision.
Personal Protection for Contractors
Because sole traders are excluded from workers’ compensation, they should carry:
- Personal Accident & Illness Insurance: To cover loss of income.
- Public Liability Insurance: To cover damage they cause to the property or others.
Property Owner Liability — The Separate Risk
This is the most critical distinction for property managers: A contractor’s lack of workers’ compensation does not protect the property owner from being sued.
Whether or not a contractor is covered by insurance has no impact on the owner’s Duty of Care. Under common law, a property owner must ensure the premises are safe for all lawful entrants.
The Negligence Factor: If a contractor is injured because of a hazard (like a loose tile or poor lighting) that the manager knew about but failed to fix, the contractor can bring a civil liability claim against the owner for negligence.
Property Owners Liability Insurance
This policy protects the owner against claims from third parties (including contractors). It is not insurance for the contractor’s benefit, but rather a shield for the owner’s assets when negligence is alleged.
Real-World Scenarios (2026 Context)
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Scenario |
Potential Outcome |
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Example 1: The Known Defect. A contractor trips on a cracked pavement in a common area that was reported to the manager a month ago but never cordoned off. |
Owner Liable: Failure to maintain a safe premises. The owner’s liability insurance would likely be triggered. |
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Example 2: The Safety Briefing. A contractor is sent to a roof without being warned of brittle skylights. They fall and are injured. |
Owner Liable: Failure to disclose a known, foreseeable risk. Significant exposure for the owner and potentially the managing agent. |
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Example 3: Asbestos. A tradesperson disturbs asbestos in a wall because the property manager failed to provide the Asbestos Register. |
Owner Liable: Breach of statutory health and safety obligations and common law duty of care. |
Quick Reference: Who Is Responsible?
|
Scenario |
Workers’ Comp Applies? |
Owner Liable for Negligence? |
|
Direct Employee of the owner is injured |
Yes (Employer pays) |
Yes (as Employer) |
|
Independent Sole Trader is injured |
No (Contractor’s risk) |
Yes (if owner was negligent) |
|
Member of the Public is injured |
No |
Yes (if owner was negligent) |
FAQ: Contractors & Liability in WA
- Does the new 2023 Act mean I don’t need to check contractor insurance?
No. You should always verify that contractors hold Public Liability insurance. While you aren’t legally required to ensure they have personal accident cover, asking for it is a vital part of your due diligence to ensure they are a legitimate independent business.
- Can I make a contractor sign a waiver to avoid liability?
Generally, no. You cannot contract out of your common law duty of care. A waiver does not excuse a property owner from the obligation to maintain a safe environment.
- What is the “7-Day Rule” in the new Act?
Under the 2023 Act, employers must now submit workers’ compensation claims to their insurer within 7 days of receiving them. While this primarily affects direct employees, it highlights the stricter compliance environment property managers must navigate.
- If a contractor has an ABN, are they automatically independent?
Not always. If you control their hours, provide their tools, and pay them for their time (rather than the result), they might be “deemed workers” despite having an ABN. When in doubt, seek legal advice.
Important Disclaimer
General Information Only: This guide provides general information regarding the Workers Compensation and Injury Management Act 2023 (WA) and property liability. It does not constitute legal or financial advice.
Seek Professional Advice: Laws and insurance requirements are complex. We strongly recommend property managers seek qualified legal counsel and consult with an insurance broker to ensure both the management agency and the property owner are adequately protected.
Resource Information & Authorship
This guide was produced by James Wilson, Director of Delmont Insurance Group — a trusted adviser and specialist insurance broker.
James Wilson provides expert insights for commercial property managers navigating the complexities of Western Australian property law and risk management. This resource is designed to help agencies maintain compliance and protect property owners from avoidable liability.
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Author |
James Wilson |
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Last Updated |
April 1, 2026 |
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Jurisdiction |
Western Australia (WA) |
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Governing Law |
Workers Compensation and Injury Management Act 2023 |
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Subject Matter |
Contractor Liability, Property Management Risk, Duty of Care |