Extending WorkCover To Support Victoria’s Self-Employed Farmers After Injury

Alex Wood, Agrifutures Australia, World Food Forum 2025

Executive Summary

Farmers experience one of the highest rates of workplace injuries in Victoria, yet they endure gaps in support when returning to work. These challenges are greatest for self-employed farmers, who are not covered under Victoria’s workers’ compensation scheme. Instead, self-employed farmers pay out of pocket for healthcare and rehabilitation while missing work and losing income. In addition to financial consequences, unsupported workplace injuries present challenges to farmers’ mental and long-term physical health and risk impacting animal welfare and farm productivity.

This paper recommends amending the Workplace Injury Rehabilitation and Compensation Act 2013 (Vic) to expand eligibility under Victoria’s existing WorkCover scheme to provide workers' compensation to self-employed farmers. This would position Victoria as a leader in farm injury support, and would follow the success of similar schemes introduced internationally - notably New Zealand's Accident Compensation Corporation scheme for self-employed workers. The amendment would provide a safety net for self-employed farmers who suffer from a workplace injury, and the often debilitating financial and health strains which follow. 

Problem Identification

Farmers in Victoria who sustain a workplace injury face distinct barriers to getting back to work (Beattie et al., 2018). The personal toll includes worries about livestock and/or crops, mounting bills, pain, deteriorating mental health, and strain on family members who must pick up extra duties (Australian Centre for Agricultural Health and Safety, 2008). These pressures are felt most acutely by self-employed farmers, who fall outside the public workers’ compensation scheme and have no guaranteed income replacement or funded treatment pathways. Resultingly, self-employed farmers often face additional private farm and health insurance costs, while experiencing the full administrative burden if injured at work. Many will also need assistive equipment specific to farm tasks, adding further cost to their recovery (Beattie et al., 2018). If left unsupported, injured farmers can slide into long term financial stress or exit the industry. 

Victoria’s agricultural output is valued at $20.2 billion per annum and depends on 68,870 workers (Agriculture Victoria, 2024). Lost time due to workplace injuries carries real economic costs and weakens the resilience of food systems (Schirmer et al., 2022). Consequently, the current rate of on-farm injuries impacts Victoria’s agricultural productivity, with an average one and a half weeks lost time per injury claim for agricultural workers in Australia (Safe Work Australia, 2013). This generates downstream effects on food security. Increasing post-injury support for farmers will enable a smoother return to work, reduce healthcare costs, and improve workplace productivity, with multifaceted benefits for farm and community health, and the broader agricultural industry.

Context

Background

AgHealth Australia (2024) outlined a spike in reported farm-related injuries in 2024 with 133 serious injuries, more than double the previous year’s figures. These life-changing events are costly on a personal, community, and societal level. This is particularly true for the 56% of Australian farmers who are self-employed (Australian Bureau of Statistics, 2012) and unable to access the public support offered to farm workers in employment contracts. This issue is compounded by the nature of farmwork, which mostly occurs in regional, rural, or remote areas, where gaps in healthcare and disability support services are more likely (Australian Institute of Health and Welfare, 2025). These rising statistics and service gaps indicate a need for policy to further support farmers experiencing a workplace injury resulting in lost work hours or rehabilitation. 

Workplace injury in agriculture is unique, as it places direct pressure on food security and land health when farmers are unable to maintain work hours while undergoing injury rehabilitation. This effect is most felt by self-employed farmers whose farm businesses rely on their ongoing ability to work, and is compounded by existing skills shortages in agriculture (Victorian Skills Authority, 2022). Farmers who have experienced workplace injuries face gaps in healthcare support, additional healthcare costs, lost productivity and income, pressure to return to work, and costs associated with retrofitting or purchasing adapted equipment in the case of injury causing disability (Beattie et al., 2018).

While education, standards, and rebates have advanced prevention, a policy gap remains in post-injury support for self-employed farmers. Any effective solution will need to pair continued prevention with targeted income protection and return-to-work support for owner-operators.

Current Policy Landscape

Current farm safety policy in Victoria is primarily delivered through the ‘Farming Safe and Well’ program. Today this includes the ‘Making Our Farms Safer’ (MOFS) education service. In 2023, the Victorian Government allocated a further $2.1 million to ‘Farming Safe and Well’, extending the MOFS service, and funding safety education programs delivered by other partners (Victorian Government, 2023). Additionally, the Victorian Government has in place mandatory incident notification legislation, requiring employers and self-employed workers to notify WorkSafe of workplace safety incidents (Occupational Health and Safety Act 2004 (Vic) s. 38). In 2024 this legislation was expanded to mandate reporting of incidents involving a broader array of workplace equipment, including tractors and quad bikes (WorkSafe Victoria, 2024).

Nationally, farm safety initiatives include the Federal Government’s 2025 commitment to funding Farmsafe Australia with $2.5 million over three years until 2028 (Parliamentary Budget Office, 2025), and the National Farm Safety Education Fund (NFSEF), allocated $375,000 for the delivery of National Farm Safety Week over three years until 2027 (Department of Agriculture, Fisheries and Forestry, 2024). The NFSEF is also able to provide grants to support the delivery of farm safety awareness and training campaigns. Additionally, the Federal Government is responsible for regulating farm equipment, notably the new mandatory safety standards introduced for quad bikes in 2020 and 2021 (Australian Competition and Consumer Commission, 2020).

Legislation at both a federal and state level focuses on farm safety education and incident prevention. Legislative gaps exist in supporting farmers post-injury, in their rehabilitation, and financial security as they return to work. Notably, gaps exist in state-based workers’ compensation arrangements, which exclude self-employed business owners, who account for 56% of farm businesses. Self-employed farmers are excluded from public workers’ compensation schemes due to their method of funding, which is covered by insurance premiums paid by employers. However, the high prevalence of both injury rates and self-employed business ownership in the agriculture sector demonstrates a unique circumstance justifying unique policy considerations.

Case Studies

New Zealand’s Accident Compensation Corporation (ACC) provides a legislated template for covering self-employed farmers after work injury. ACC is a universal, no-fault scheme today legislated under the Accident Compensation Act 2001 (New Zealand). Weekly compensation for loss of earnings is set at 80% of pre-injury earnings, payable after the first week of incapacity. The scheme is built to handle owner-operators without employer oversight. For self-employed claimants, ACC verifies income using Inland Revenue tax data.

If implemented in Victoria, a workers’ compensation scheme designed for self-employed farmers could mirror the ACC’s approach. This includes compensation as a fixed proportion of verified pre-injury earnings. The ACC approach shows these elements work at scale for farmers and other self-employed groups. 

Although outside of workers’ compensation, in Victoria the Transport Accident Commission (TAC) provides a model for income support for self-employed workers. TAC pays income support to self-employed workers after transport injuries. This compensation is set under the Transport Accident Act 1986 (Vic) and verifies self-employed earnings via taxation records. This demonstrates Victorian precedent to use tax records to deliver ongoing weekly payments to the self-employed. 

Stakeholders

Key stakeholders include Agriculture Victoria, WorkSafe Victoria, Rural Finance, research bodies including the National Centre for Farmer Health, industry groups including the Victorian Farmers’ Federation, and not-for-profit organisations Farmsafe Australia and Ability Agriculture. Regional communities and farmers, as those targeted by this policy proposal, are stakeholders crucial in the consultation and implementation of policy vis-à-vis farm injury support.

Policy Options

Option 1: Amend the Workplace Injury Rehabilitation and Compensation Act 2013 (Vic) to provide workers' compensation and healthcare for self-employed farmers.

This amendment would expand the eligibility of Victoria’s WorkCover insurance scheme to include self-employed farmers. This would grant workers’ compensation and medical treatment to owner-operator farmers, who comprise 56% of farm businesses. Expanding the scheme to include self-employed farmers would provide all farm workers with financial support and access to additional resources to assist with returning to the farm post-injury. This includes free access to specialist healthcare services and wage replacement payments. It is proposed that the cost of providing expanded coverage be fully subsidised by the Victorian Government, rather than the existing system of premiums which fund current WorkCover arrangements for non-self-employed workers. 

Administration of the amendment would be overseen by the Victorian WorkCover Authority (WorkSafe). It is estimated that the scheme would cost the Victorian Government $10-20 million annually, providing compensation for 200-300 farmers annually, and coverage for all self-employed farmers. 

Although limited to farmers, the proposed amendment would be the first extension of WorkCover to insure self-employed individuals. This would likely provoke calls for the scheme to be expanded to self-employed individuals in other sectors. The high-risk nature of farming, combined with its high proportion of self-employed workers, provides a basis for agriculture’s exception.

Option 2: Establish a Peer Mentor Network for injured Victorian farmers as a WorkSafe-led prevention and education program under the Occupational Health and Safety Act 2004 (Vic).

This program would provide farmers practical support from trained peer mentors to help injured farmers return to work. Peer mentors would be trained from Victorian farmers who have recovered from workplace injuries. They would offer phone/video coaching, on-farm visits, goal setting, and information on farm equipment or task modifications. This farmer-to-farmer model would address the isolation and mental health risks many injured producers face. A peer mentorship program recognises the reluctance many farmers feel seeking professional help as a first step, allowing them to receive support from farmers they can immediately relate to. If recognising a need, peer mentors may also recommend further professional support services, improving their uptake and health outcomes for injured farmers. 

WorkSafe Victoria would administer the initiative, delivered via a contracted not-for-profit. The delivery partner would recruit and train mentors regionally to ensure locally relevant knowledge and timely access. The initiative would be accessible by all Victorian farmers with a recent work-related injury, who may self-refer or be referred by a GP or WorkSafe case manager. 

Estimated annual program cost is $0.75-$1.0 million for statewide coverage of up to 300 mentees, comprising coordination, mentor recruitment/training, honoraria, travel, and evaluation. Risks include variable mentor quality and uneven uptake in remote districts. These would be mitigated by ongoing mentor supervision, and partnerships with GPs, Primary Health Networks, and industry partners to drive referrals. 

Option 3: Establish a Victorian Farm Injury Recovery Loan program to provide zero-interest short term income support to self-employed farmers during recovery from a workplace injury.

The proposed Victorian Farm Injury Recovery loan program would offer eligible self-employed Victorian farmers zero-interest loans of up to $5,000 per month for up to six months. The effect of this policy would be to stabilise household cashflow while the farmer is partially or wholly unable to work. Eligibility would require a Victorian ABN with primary production as the main activity, evidence of recent farm income through lodged tax or BAS statements, and a clinician or WorkSafe certification of a work-related injury and temporary incapacity. Administration would sit with Agriculture Victoria, the Department of Treasury and Finance, and Rural Finance.

Repayments would follow a fixed timetable, with an initial 24-month repayment holiday during which no repayments are required. After the holiday, the farmer would repay the loan in equal monthly instalments over the remaining term, up to a maximum total term of ten years from first drawdown. This mirrors similar concessional loan schemes established by the Victorian Government, such as the Victorian Bushfires Concessional Loans. The scheme could attract up to 300 users annually, with gross advances totalling $9 million per year at full uptake. Long run repayments would recover a significant share of outlays, with any remaining balance treated as an intentional public investment in farm viability, animal welfare, and regional supply chains during injury shocks.

Policy Recommendation

Option 1, to “Amend Workplace Injury Rehabilitation and Compensation Act 2013 (Vic) to include a new clause (Clause 18 Self-employed agricultural workers) under Schedule 1” is recommended. This clause would extend wage replacement payments and rehabilitation support to self-employed farmers. 

WorkSafe Victoria would administer claims, with eligibility verified using Australian Taxation Office data. Healthcare and rehabilitation support would follow current fee schedules and guidelines for non-self-employed workers. Weekly payments would use current pre-injury average weekly earnings (PIAWE) rules. 

Under this amendment, the Victorian Government would fully subsidise the scheme’s expansion to self-employed farmers, so no new farm levy would be required. This avoids creating an additional financial burden for farmers, and significantly reduces the risk of opposition from farmers sensitive to rising levies. The Minister for WorkSafe would lead implementation, supported by the Department of Treasury and Finance, and Agriculture Victoria. Commencement could occur 6-12 months after passage, with regional outreach delivered before launch.

Predicted Costs

The scheme is estimated to cost the Victorian Government $4-5 million annually. This accounts for fully Government-subsidised insurance coverage for self-employed Victorian farmers, estimated to be 56% of Victoria’s 21,300 farm businesses. Applying the claims rate for Australia’s agriculture sector of 20.2 claims per 1,000 workers per year (Safe Work Australia, 2022) to these 11,928 owner-operators, it is estimated that the scheme would provide coverage for approximately 241 claims per year. Median compensation for claims in Victorian agriculture is $13,190 (Safe Work Australia, n.d.), or a calculated $3.18 million annual cost for the amendment based on claim payouts. Allowing for a moderate uplift, and administration costs, the final $4-5 million per annum figure is reached.

Risks

Barriers and Risks

A likely barrier for policy adoption is pressure from self-employed workers outside of agriculture, who may advocate for broader expansion of WorkCover beyond farmers. Additionally, the scheme, as compared to the Victorian Government's existing 3-year $2.1 million Farming Safe and Well program, would constitute a substantial increase in budget allocation towards addressing high agricultural workplace injury rates. The scheme’s cost, and application to farm workers only, can be justified by agriculture’s uniquely dangerous work environment, and the current lack of public insurance coverage for a majority of farm businesses.

Key risks of the policy include the limited availability of allied health and rehabilitation specialists in some regions to service new claimants. However, the estimated number of eligible farmers suggests additional pressure from the scheme on healthcare services will be limited. Additionally, self-employed farmers may be unfamiliar with WorkCover processes, particularly long-term owner-operators. Targeted communication through accountants, rural financial counsellors, and farm organisations would lift uptake.

The volatility of farm income, including through long term productivity loss caused by environmental conditions such as drought, could reduce PIAWE. This could result in unfairly reduced compensation for farmers navigating long-term disasters. The scheme should therefore develop PIAWE calculations which consider this volatility, including comparisons to previous years’ income, or offering longer term averages where relevant. 

References

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Accident Compensation Corporation. (2025). Weekly compensation for self-employed. https://www.acc.co.nz/im-injured/financial-support/weekly-compensation/weekly-compensation-for-self-employed

AgHealth Australia. (2024). Non-intentional farm-related incidents in Australia: January–December 2024. https://aghealth.sydney.edu.au/wp-content/uploads/2025/03/25-006-non-intentional-farm-related-incidents.pdf

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https://classic.austlii.edu.au/au/legis/vic/consol_act/ohasa2004273/s38.html

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