NSW Government consults on changes to Workers Compensation

The Minns Government has released an Exposure Draft Bill outlining proposed reforms to the New South Wales workers compensation scheme, with a particular focus on addressing the sharp rise in psychological injury claims.

This marks the next phase in a broader reform agenda aimed at ensuring the long-term sustainability of the system.  

Key reforms proposed under the draft legislation include: 

• Establishing a new bullying and sexual harassment jurisdiction within the Industrial Relations Commission, with dedicated powers to address inappropriate conduct in the workplace. 
• Introducing targeted mental health programs for small and medium-sized businesses in partnership with the Black Dog Institute and Transitioning Well. 
• Expanding the SafeWork inspectorate to include inspectors with industry-specific and psychological expertise. 
• Creating statutory definitions for "psychological injury" and "reasonable management action"  
• Aligning whole person impairment thresholds with those currently used in South Australia and Queensland. 

The draft Bill has been referred to the Standing Committee on Law and Justice for further examination. The Committee is currently undertaking a parliamentary inquiry and is expected to deliver its report to the Government by Friday, 23 May 2025. 

NIBA is currently engaging with members to ensure the final reforms reflect the needs of both businesses and injured workers. A submission outlining the profession’s perspective will be provided to the review by Thursday 15 May.