NSW Workers' Compensation Reforms: A Step Backward for Psychological Injury Claims

In the face of mounting financial pressure, the NSW Government has proposed sweeping changes to the state’s workers’ compensation scheme. These reforms—particularly those targeting psychological injury claims—have sparked concern among healthcare professionals, public sector workers, and legal advocates alike. With higher thresholds for compensation, narrower definitions, and increased procedural barriers, many fear the changes may undermine access to fair support for injured workers across NSW. This article examines the implications of the proposed reforms for employees, employers, and the future of mental health protection in the workplace.