Call
By Amy Scanu
Have you experienced a psychological injury at work? The date it happened could make a difference to your claim.
On 1 July 2026 a number of amendments to the workers compensation scheme in NSW came into force that impact primary psychological injuries.
The key changes include:
1. The circumstances leading to psychological injury must now fit within the definition of one or more “relevant events”
These are:
• Being subjected to an act or threat of violence
• Being subjected to indictable (very serious) criminal conduct
• Witnessing a traumatic incident, the death/serious injury of a person at the scene of a traumatic incident or a prescribed death
• Experiencing vicarious trauma
• Being subjected to sexual harassment or racial harassment
• Being subjected to bullying, and
• Being subjected to excessive work demands
2. Liability disputes will be determined by the Industrial Relations Commission
For claims regarding bullying, sexual harassment, racial harassment or excessive work demands. The Independent Review Office will fund legal representation for injured workers in the IRC.
3. Entitlement periods for weekly payments and medical expenses have been reduced
The entitlement to weekly payments is capped at 130 weeks. In some circumstances a worker may be eligible to receive an additional 52 weeks at a reduced rate.
The entitlement to medical expenses has been reduced to 1 year (previously 2 years) from the date of injury or the date the worker last receives weekly payments, whichever is the later.
4. The threshold to make a work injury damages claim has been increased to 25% whole person impairment
This is a significant increase from the 15% threshold for injuries prior to 1 July 2026, which will limit access to a damages claim for many injured workers. The threshold will continue to rise gradually over the next 3 years to 28%.
Importantly this does not apply to claims for lump sum compensation for primary psychological injuries, for which the threshold remains 15% WPI.
What do injured workers need to know?
Firstly, if you are experiencing circumstances that may lead to psychological injury in the workplace, it would be beneficial to keep notes about each incident that occurs, including date and time, details of what happened, what was said, who was involved, and any witnesses.
Secondly, the date the worker notifies the employer of their injury is critical and could make a significant difference to their entitlements. Early notification is key. This might be different to the date of injury used for a claim.
If you are unsure whether or how these changes may apply to you, seek legal advice.
