NSW Workers Compensation and Courier Drivers: What You Need to Know

One of the least-understood legal issues for courier drivers in NSW is the workers compensation deeming provision in section 175B of the Workers Compensation Act 1987 (NSW). This provision can, in certain circumstances, treat an independent contractor as a worker for workers compensation purposes — even if both parties intended a contractor relationship. This guide explains what that means and how your independent contractor status is protected.

What Section 175B Says

Section 175B provides that a person who performs work under a contract “substantially for the labour of the person” is deemed to be a worker if their remuneration does not exceed a prescribed threshold. In practice, this means that a contractor who works exclusively (or substantially) for one principal, generating most of their income from that one source, may be deemed a worker for the purposes of the principal’s workers compensation obligations.

This is relevant for courier drivers because: parcel delivery is largely a labour service, and some drivers may work predominantly for one operator.

How Independent Contractor Status Is Protected

The most important protection is simply operating as a genuinely independent contractor. The key indicators of genuine contractor status are:

• Providing services to multiple clients — if you also drive for other courier companies, make your own deliveries, or have other income streams, the deeming provision is less likely to apply.
• Holding your own ABN — and using it to receive payment from multiple sources over time.
• Holding your own insurance — comprehensive vehicle insurance in your own name covering your business use.
• Making your own decisions about when and how much you work — not being directed in the way an employee is.
• Providing a multi-client declaration — a written statement confirming you operate independently and are not substantially dependent on any single client.

The Multi-Client Declaration

A multi-client declaration (sometimes called an s175B statement) is a short written statement the driver provides to the operator confirming they provide services to multiple clients and do not derive substantially all of their income from this engagement. This is a standard part of the driver onboarding process and provides documentary evidence of the independent contractor relationship.

If you choose to work exclusively for one operator, that is your choice — but you should be aware that the deeming provision may apply in that case, and the operator may have workers compensation obligations toward you.

The General Carriers Contract Determination (GCCD)

Separately from workers compensation, NSW also has the General Carriers Contract Determination 2009, which sets minimum safe rates for certain owner-driver and courier roles. This applies to vehicles carrying goods for hire or reward. It sets minimum hourly and kilometre-based rates for vehicle types ranging from cars to semi-trailers.

Any subcontractor agreement with a courier operator should comply with the GCCD minimum rates for your vehicle type.

Practical Takeaway

As a courier driver operating as an independent contractor in NSW:

• Maintain your own ABN.
• Hold your own comprehensive vehicle insurance (goods-for-reward cover).
• Work for more than one client over time if possible.
• Sign a subcontractor agreement that accurately reflects your contractor status.
• Provide a multi-client declaration if asked.

If you are ever uncertain about your status or rights, the NSW Workers Compensation Independent Review Office (WIRO) and the Small Business Commissioner provide free guidance.