NSW Workers Compensation Changes: What They Mean for You
The New South Wales Government has introduced significant workers compensation reforms that will affect people with psychological injuries. These reforms follow a bipartisan agreement between the Government and the Coalition. You can read the external reporting here.
At Veritas Law Firm, we believe clarity empowers injured workers. You matter, and understanding your rights under these new laws can help protect your wellbeing.
Key Changes to the NSW Workers Compensation Scheme
The Government will increase the whole person impairment threshold for psychological injury from 15 percent to 25 percent, then to 28 percent by 2029. People who do not meet this threshold will no longer qualify for long term workers compensation benefits. Support may instead be limited to two years, with a possible transition year.
The reform package also introduces an eighteen month premium freeze and an updated return to work program.
How These Reforms May Affect Psychological Injury Claims
The higher impairment threshold means that fewer workers may qualify for ongoing benefits. Many workers with serious psychological injuries may not reach 25 percent or 28 percent impairment even if they cannot safely return to work.
Stakeholders including unions and clinicians have raised concerns that the new threshold may exclude many legitimate mental health injury claims. There are also concerns about increased reliance on Medicare, Centrelink or other Commonwealth supports.
If you have questions about how the changes apply to your situation, you can connect with our team via our Contact page.
Medical Assessments and Permanent Impairment Ratings
The state’s Chief Psychiatrist has been asked to develop a new diagnostic tool for assessing psychological injury in NSW workers compensation matters. Some stakeholders have questioned the timing of this new tool and have requested details on how the assessment process will be applied.
Medical evidence remains an essential part of every psychological injury claim.
Return to Work Requirements Under the New Reforms
The updated return to work program is expected to include retraining, mentoring and support from specialist case managers. Workers may receive up to 60 percent of their pre-injury earnings while participating.
Further information about employer obligations and program delivery is still being developed. Understanding your return to work expectations is an important part of any workers compensation claim.
Our team is available to discuss your circumstances through our Contact page.
What These Changes Mean for Injured Workers
If you have suffered a psychological injury at work, these reforms may affect your access to weekly payments, medical treatment and long-term support. Your impairment rating will play a significant role in determining your entitlements.
Early legal advice can help you prepare for scheme changes, secure the right medical assessments and understand your options. You matter, and your recovery and financial stability matter too.
To speak with a member of our team, you can contact us for personalised advice.
How Veritas Law Firm Supports Injured Workers
Veritas Law Firm provides legal guidance for workers navigating compensation claims, including psychological injury matters. We help clients understand their rights, prepare evidence and respond to changes within the workers compensation system.
Know Your Rights: You Matter
Understanding the new thresholds, support timeframes and assessment requirements is essential for protecting your workers compensation rights. Every injured worker deserves clarity, respect and support.
You matter, and your wellbeing is our priority.
We are here to support you at every stage of your workers compensation journey.
