WorkCover Fraud Queensland: Penalties and Lost Rights

Providing deliberately false information during a WorkCover claim can have consequences far beyond the cancellation of weekly payments.

Under Queensland law, a person convicted of defrauding a workers’ compensation insurer may face imprisonment, a recorded criminal conviction, an order to repay money, prosecution costs and the loss of any entitlement to compensation or common law damages for the injury.

Two prosecutions finalised in May 2026 show how seriously the courts treat WorkCover fraud Queensland matters. They also highlight an important point. A worker’s original injury and compensation claim may be genuine, but dishonest conduct during the life of the claim can still amount to a criminal offence.

What is WorkCover fraud in Queensland?

Section 533 of the Workers’ Compensation and Rehabilitation Act 2003 states that a person must not defraud, or attempt to defraud, an insurer.

The maximum penalty is 500 penalty units or five years’ imprisonment. The offence can apply to conduct involving WorkCover Queensland or a workers’ compensation self-insurer.

In practice, workers compensation fraud may include conduct such as:

• hiding employment or income while receiving weekly compensation;
• claiming reimbursement for expenses that were never incurred;
• misrepresenting a person’s work capacity;
• submitting altered or fabricated records;
• providing information known to be untrue to obtain a payment; or
• continuing a dishonest course of conduct after being asked to clarify the position.

Fraud ordinarily involves deliberate dishonesty. An inconsistency, poor recollection or administrative error does not automatically establish fraud. The person’s knowledge and intention, the materiality of the information and the surrounding evidence will all matter.

What is the difference between fraud and false information?

Section 534 creates separate offences involving statements and documents.

A person must not make a statement to WorkCover, the Regulator, a self-insurer or a registered person that the person knows is false or misleading in a material particular. A person must also not provide a document containing information they know is materially false or misleading.

The maximum penalty for these offences is 150 penalty units or one year’s imprisonment.

Providing false information to WorkCover can therefore be prosecuted even where the prosecution does not rely solely on the broader fraud offence.

There is also an important distinction when considering the loss of compensation rights. Section 537 expressly applies when a person is convicted of fraud under section 533 or certain related Criminal Code offences. A conviction only under section 534 does not, by itself, necessarily produce the same statutory result. The exact charges and findings are therefore important.

Two Queensland workers convicted in May 2026

Recent prosecution outcomes published by WorkSafe Queensland provide clear examples of the conduct that can lead to prosecution.

Failing to disclose a return to work

On 25 May 2026, a worker pleaded guilty in the Brisbane Magistrates Court to one charge of fraud and four charges of providing false information.

The worker had suffered a workplace injury while employed as a carer. Before her claim was accepted, she began working elsewhere as an assistant in nursing but did not disclose the employment.

According to the prosecution summary, she made false statements about her ability to drive, whether she had another job and whether she was receiving another income. WorkCover calculated that it had been defrauded of $12,270.07.

The court imposed six months’ imprisonment for the fraud charge and two months for each false-information charge. The sentences were concurrent and wholly suspended for an operational period of 18 months.

The worker was also ordered to pay $11,891.69 in restitution and $3,446.51 in costs. A conviction was recorded, and the published outcome states that her common law rights were extinguished.

False travel and accommodation claims

A second worker was sentenced in the Maroochydore Magistrates Court on 29 May 2026.

The worker was a fly-in, fly-out employee who suffered a genuine workplace injury. His compensation claim was accepted, and he was certified fit for light duties. His employer arranged suitable duties and paid for accommodation in Brisbane.

The worker attended the duties for two days and then stopped. Despite this, he continued submitting travel and accommodation reimbursement claims to WorkCover.

WorkSafe reported that he made 33 false claims. WorkCover paid 23 of them, totalling $4,560.08. The remaining 10 attempted claims had an expected value of $1,867.

He pleaded guilty to fraud and attempted fraud. The court imposed three months’ imprisonment on each charge, concurrent and wholly suspended for 12 months. He was ordered to repay $4,560.08 and pay $2,000 in costs. A conviction was recorded, and his common law rights were extinguished.

Can a genuine injury still lead to a fraud conviction?

Yes.

The Maroochydore prosecution expressly records that the worker had a valid compensation claim. The offending arose from false expense claims made after the original claim had been accepted.

Similarly, the Brisbane prosecution was not based on a finding that the original workplace injury was invented. It concerned undisclosed employment and repeated false statements during the claim.

This is one of the most important lessons from the two cases. WorkCover fraud Queensland offences are not limited to people who fabricate an accident from the beginning. Fraud may occur later if a worker dishonestly seeks payments or benefits to which they are not entitled.

What are the consequences of defrauding WorkCover?

Imprisonment and a criminal conviction

The WorkCover fraud penalties available under section 533 include up to five years’ imprisonment or 500 penalty units.  As as 1 July 2026, this equates to $86,350.

A suspended sentence is still a sentence of imprisonment. Although the person is not immediately required to serve the term, the sentence may be activated if the person breaches its conditions during the operational period.

A conviction may also be recorded. That can have consequences outside the WorkCover matter, including for employment, professional registration, travel and future court proceedings.

Restitution and prosecution costs

A court may order the offender to repay money obtained through the offending. This is commonly described as WorkCover restitution.
Section 537 provides that where the prosecution proves compensation or damages were obtained through the offence, the court must, on the insurer’s application, order repayment of the relevant amounts. The order can be enforced in the same way as a civil debt.

The person may also be ordered to pay prosecution costs. Depending on the circumstances, the insurer may have additional rights to recover costs associated with a damages proceeding.

Loss of compensation and damages rights

Section 537 creates one of the most severe consequences of a fraud conviction.
Where the section applies, any entitlement the person may have to compensation or damages for the injury ends. Any existing compensation claim or damages claim also ends.

This can affect both:

• statutory benefits such as weekly payments, treatment and rehabilitation expenses; and
• common law rights to pursue damages arising from the workplace injury.

The financial impact may be much greater than the amount obtained by fraud. A worker who dishonestly receives several thousand dollars could potentially lose a damages claim worth substantially more.

There are limited qualifications within section 537, including provisions dealing with particular deemed fraud under section 535. The application of those exceptions depends on the precise offence and facts.

What should workers disclose during a WorkCover claim?

Workers should provide accurate information and promptly update the insurer when circumstances change.

Matters that may need to be disclosed include:

• returning to any form of work;
• starting a second job;
• undertaking self-employment or paid contract work;
• receiving income from employment;
• changes in certified work capacity;
• performing duties inconsistent with stated restrictions;
• expenses paid by an employer or another organisation; and
• errors in an earlier claim form, reimbursement request or conversation.

Returning to work does not necessarily mean that all WorkCover entitlements will immediately end. A worker may remain entitled to partial weekly compensation, treatment or rehabilitation support depending on the circumstances. The problem arises when the work or income is concealed or false information is deliberately provided.

What should you do after giving incorrect information?

An incorrect statement should not be ignored.

The appropriate response will depend on whether it was an innocent mistake, an incomplete answer or something more serious. In general, a person should avoid repeating the incorrect information, preserve relevant records and obtain legal advice before giving a detailed response to a suspected fraud allegation.

Correcting an error promptly may help explain how it occurred. It does not guarantee that WorkCover will take no further action, particularly where money has already been paid or there is evidence of deliberate conduct.

A worker contacted about suspected WorkCover fraud Queensland should also understand that the issue may involve both compensation law and criminal law. Anything said in an interview, email or recorded conversation may become evidence.

Clear and accurate information protects the claim

The two May 2026 prosecutions involved different types of dishonesty, but the outcome was similar. Both workers received suspended terms of imprisonment, were ordered to repay money and costs, had convictions recorded and lost their damages rights.

The practical message is straightforward. Give accurate information, disclose changes and ask for clarification when you are unsure what WorkCover requires.

Best Injury Lawyers practises in Queensland personal injury and workers’ compensation law. If you would like information about WorkCover law, your disclosure obligations or the effect of an issue arising during a claim, contact us.