New South Wales, Australia

NSW Workers Compensation Scheme – proposed changes updates

With the first Workers Compensation Legislation Amendment Bill 2025 stalled (having passed the Lower House, it failed to pass the Upper House and was referred back to the Public Accountability and Works Committee for another inquiry and report), a new bill was introduced to Parliament on 6 August 2025.

The government said “every day of delay means the system deteriorates further, and the lack of certainty only compounds the pressure being felt by businesses and community groups across NSW. The government’s preferred option is for parliament to vote on the original bill. However, it is not prepared to let the uncertainty carry on indefinitely.” It also reiterated that its changes are critical and, without them, workers’ compensation premiums will increase 36% over three years, even if employers have no claims against them.

At the time of writing, no further information on the progress of the second bill was available.

Further information:

NSW New WHS Laws

The Industrial Relations and Other Legislation (Workplace Rights) Act 2025 was passed by the New South Wales Parliament on 26 July 2025. The Act introduces sweeping changes to WHS enforcement, and creates a bullying and harassment jurisdiction in the Industrial Relations Commission (IRC).

Gillis Delaney Lawyers notes: New rights for unions and workers include taking WHS-related disputes and disputes about the return to work of an injured worker to the IRC. The IRC has the power to conciliate and arbitrate disputes about:

    • Return-to-work for injured employees.
    • Access to safety information and training.
    • Health and safety committee issues.
    • Rights of workers to cease unsafe work.

Under the new laws, unions can now bring criminal prosecutions against employers for WHS breaches – including those involving psychological harm – where the Regulator declines to do so (after mandatory consultation with the Regulator). Unions may receive a portion of the penalty imposed on the business following a successful prosecution.

Further information:

NSW workers compensation rehab costs surge

The cost of services from NSW’s 105 approved workplace rehabilitation providers increased 68% over three years – up from $107 million from July to December 2021 to $180 million in the same period in 2024, according to research commissioned by SIRA. The rise was attributed, in part, to increasing psychological injury claims and referrals.

Further information:

 

Victoria, Australia

WorkSafe Victoria – workplace hazard fines rise 10%

WorkSafe Victoria undertook 123 prosecutions for health and safety violations in FY25 – with court-ordered fines and undertakings totalling $12.4 million (up $1.1 million from FY24). Inspectors also conducted 57,600 workplace inspections and issued almost 16,300 compliance notices (up from 50,177 inspections and 13,943 notices the previous year).

WorkSafe Victoria aims to reduce the number of deaths by 30% and injuries by 20% over the next five years. It said healthcare and social assistance, construction, government, agriculture, and manufacturing (which collectively accounted for almost 60% of work-related deaths and accepted workplace injury claims in the past five years) will be priority industries over the next year.

Further information:

 

Questions?

For more information on Workers Compensation Insurance, Injury Management or Early Intervention Return to Work Services please contact us.