NSW workers compensation psychological injury changes.

What you need to know before 1 July 2026.

If your work has affected your mental health, this page is important to understand. NSW workers compensation laws are changing from 1 July 2026. These changes may affect your rights to support and compensation, particularly for psychological injury claims.

If you’re unsure where you stand, it may be important to understand your options before the new rules begin. Free, no-obligation advice is available. Call 02 9264 4474 or request a call back.

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Find out where you stand.

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Maximum compensation.

What’s changing in the law?

The NSW Government has passed reforms that will change how psychological injury claims are assessed. One of the key changes is that workers will need to show a higher level of psychological injury to access certain compensation.

In practical terms, this means some workers who may qualify under the current system may not qualify once the new rules apply from 1 July 2026. These changes will apply to new claims made after this date.

What is a psychological injury claim?

A psychological injury claim relates to mental health issues caused by work. This may include situations where your job has contributed to conditions such as:

Post-traumatic stress (PTSD).
Anxiety or depression.
Stress related conditions.
Other psychological injuries linked to your work environment.

To make a claim, there must be a clear connection between your work and your condition, and certain legal requirements must be met. If you’re unsure whether your situation may qualify, getting advice can help you understand where you stand.

Get FREE claim advice today.

A specialist lawyer will review your circumstances and tell you how much you can claim.

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Examples of psychological injury at work.

Psychological injuries can arise in different ways depending on the workplace and role. Some common examples include:

Workplace bullying or harassment.
Exposure to traumatic or distressing incidents.
Ongoing excessive workload or pressure.
Roles involving repeated exposure to confronting situations.

Every situation is different, and not all experiences will meet the legal requirements for a claim. But if your work has affected your mental health, it may be worth understanding your options.

How impairment requirements affect claims.

Under the current system, workers must reach a certain level of impairment to access some types of compensation. From 1 July 2026, this level will increase for psychological injury claims.

In simple terms, this means a worker will need to show a more severe psychological injury to qualify for certain compensation. Because of this, some people who may be eligible under the current rules may not meet the new requirements.

How Law Partners may be able to help:

At Law Partners, we’ve helped thousands of injured workers understand their rights and access the support available to them. We know that dealing with mental health issues related to work can feel overwhelming, especially when the system is complex and changing.

That’s why we offer free, no-obligation advice so you can get clear information about your situation before deciding what to do next.

“Many people aren’t sure whether their situation qualifies or what the changes mean for them. Getting the right advice early can make a real difference in understanding your options.” – Chantille Khoury, Partner at Law Partners

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Learn more about the changes.

If you’d like to explore this topic further, you can read our guides below:

Frequently asked questions:

What changes are being made to workers compensation in NSW?

The NSW Government has passed reforms that will change how some psychological injury claims are assessed under the workers compensation scheme.

These reforms include higher Whole Person Impairment (WPI) requirements (the level of injury needed to qualify) for certain psychological injury claims.

The new rules are expected to apply from 1 July 2026.

How will the requirements for psychological injury claims change?

Currently, workers with a primary psychological injury generally need at least 15% Whole Person Impairment (WPI) to access permanent impairment compensation.

From 1 July 2026, this 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 psychological injury to access certain compensation.

What is a psychological injury in workers compensation?

A psychological injury can develop due to events or conditions in the workplace.

This may include situations where work-related mental health issues arise from trauma, stress, bullying or harassment connected to a person’s employment.

Each situation is different, and a claim must meet certain legal requirements under the workers compensation scheme.

Will everyone be affected by the changes?

The reforms mainly apply to new psychological injury claims lodged after 1 July 2026. Some workers, such as certain emergency service workers, may be treated differently under the legislation.

Should I seek advice before the law changes?

If you believe you may have work-related mental health issues, it may be important to seek advice before the changes take effect.

An experienced workers compensation lawyer can help you understand where you stand now and what options may be available.

How can Law Partners help?

Law Partners has extensive experience helping injured workers navigate the NSW workers compensation system. We offer free, no-obligation advice, so you can speak with a lawyer and better understand your situation before deciding what to do next. You can call 13 15 15, use live chat, or request a call back at lawpartners.com.au.