A shift toward greater transparency
Major Changes to NSW Workers Compensation: What Insurers and Employers Need to Know
NSW Workers Compensation Reforms Introduce Major Changes to Psychological Injury Claims
The Workers Compensation Legislation Amendment Acts 2025/2026 introduce significant reforms to psychological injury claims in NSW.
Key highlights:
– New Compensability Test Primary psychological injuries now require a “relevant event”, a real and direct connection to employment, and employment must be the main contributing factor. General work stress and interpersonal conflict claims are excluded.
– Accelerated Claims Process For bullying, harassment, and excessive work demands claims.
– Stricter Thresholds for Damages Permanent impairment thresholds for psychological injury damages claims increase progressively.
– Enhanced Section 11A Defence Strengthened protections where reasonable management action is the significant cause of psychological injury.
These reforms fundamentally reshape the NSW workers compensation landscape.
Gair Legal is ready to help insurers and employers navigate these changes. Please reach out if we can be of assistance.
