NSW workers compensation changes 2026: How your claim could be affected.

The NSW workers compensation system is changing.

Reforms passed by the NSW Parliament will introduce stricter requirements for psychological injury claims, with the new rules set to take effect from 1 July 2026.

If you’re dealing with work-related mental health issues, it’s important to understand how these changes could affect your rights and what options may be available to you.

What are the NSW workers compensation reforms?

The Workers Compensation Legislation Amendment Bill passed in February introduces several reforms to the NSW workers compensation system. One of the most significant changes is an increase in the level of impairment a worker needs to show (known as Whole Person Impairment, or WPI).

Currently, workers with a primary psychological injury must reach at least 15% WPI to access certain permanent impairment compensation. From 1 July 2026, that threshold will increase to at least 25% for new claims. Further increases are planned in future years.

In simple terms, this means a worker will need to show a more severe level of psychological injury to qualify for certain compensation.

Changes to workers compensation NSW workers should understand.

These changes could affect workers experiencing mental health issues connected to their employment.

This may include conditions such as post-traumatic stress disorder (PTSD), or psychological injuries that develop due to workplace stress, trauma, bullying, or harassment.

Because the requirements will be significantly higher, some workers who may have been eligible under the current rules may not qualify once the changes take effect.

Why it may help to seek advice before 1 July.

If you’re currently off work due to work-related mental health issues, or believe your job may have contributed to your condition, it may be important to seek advice before the changes come into force.

Speaking with an experienced workers compensation lawyer can help you understand:

• Whether you may have a valid claim.
• What support and entitlements may be available
• How the upcoming reforms could affect your situation.

How Law Partners may be able to help you.

It may be important to seek advice before the law changes take effect.

Law Partners has extensive experience helping injured workers understand their rights under the NSW workers compensation scheme. If you’re unsure where you stand, our team offers free, no-obligation advice so you can get clear information about your options.

To start a conversation, call 13 15 15, use the live chat on our website, or request a call back here.