Workplace News

Psychological harm in focus

The Queensland government is reviewing legislation related to workers compensation and industrial relations, in response to emerging trends, including increases in primary and secondary psychological injury claims. Fraud and self-insurance arrangements were also identified by the review, which will look at the impact of these trends in relation to the human and financial costs, as well as risks to scheme integrity and stability.

The WA government launched program funding to support work-related suicide prevention initiatives.

Administered by WorkSafe WA, the $3.39 million funding will be awarded to programs that support mental health in workplaces, particularly in higher risk industries like construction and transport.

In February 2026, the NSW government passed a bill amending Workers Compensation Legislation, to address the growth in psychological injury claims, along with ensuring financial sustainability and improving consistency across Workers Compensation, industrial relations and WHS laws. The NSW government will advise start dates for the change in due course.

WorkCover WA releases recommended premium rates

WorkCover WA released the Recommended Premium Rates for 2026/27, with an average premium increase of 5.9%. This is due in part to the average cost of claims continuing to significantly increase since the new legislation came into effect. The recommended rates are based on claims experience, economic conditions and broader scheme cost pressures.

Public consultation sought on upcoming changes to the NSW Workers Compensation Scheme

Following the bill passed in February, NSW government is requesting feedback on draft regulations and guidelines for the workers compensation legislative amendments. Responses can be submitted via the NSW Government’s Have Your Say platform. Submissions can be made until Friday 15 May 2026.

National Insurance Brokers Association (NIBA) responds to WorkCover WA proposal

Following the Workers Compensation and Injury Management Act 2023 coming into effect in 2024, WorkCover WA is seeking feedback on proposed Act amendments. NIBA, the peak body for insurance broking, submitted a response based on the practical experience of WA members. EBM Injury Management expert Luke Westell contributed to the submission.

WA grant opportunity for workplace initiatives that support mental health

If you’ve got ideas for a program that builds awareness and understanding of psychosocial hazards in your workplace, you may be able to apply for the Mentally Healthy Workplaces Grant Program. There is $1 million of grant funding available each year for initiatives that improve mental health and reduce harm in the WA workplaces. Examples include toolkits, training programs, risk assessment tools and more. Applications close 12 May 2026.

Questions

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

Creating a safe workplace to manage workers compensation risks

At EBM, we’re committed to helping you create a safe workplace and manage your workers compensation risks effectively.

Clients with Western Australian workers compensation policies with GIO or Allianz can attend expert-led information sessions designed to help you:

Reduce workplace injuries
Lower claims costs
Improve recovery
Improve return to work outcomes.

Find out more

Sessions are offered in flexible formats, including in person, self-paced and online:

2026 GIO Employer Training Schedule (PDF Download)
2026 Allianz Employer Training Schedule (webpage)

Early Intervention Return to Work Service supports better recovery outcomes

Research consistently shows that timely action and meaningful support after a workplace injury leads to:

Faster and more sustainable recovery
Reduced claim duration and overall costs
Stronger workplace engagement and communication
Better long‑term outcomes for injured workers.

That’s why our Early Intervention Return to Work Service is purpose‑built to simplify the return‑to‑work process and deliver improved results for both injured workers and employers.

Aligned with the It Pays to Care philosophy, our service provides:

Expert guidance when it matters most- the early stages of injury management
Collaborative communication between employers, workers, medical professionals, and insurers
Reduced administrative burden though clear, simple processes
Improved recovery outcomes that ultimately lower costs and strengthen workplace relationships.

More information

Talk to your EBM Account Manager or email the team at rtws@ebm.com.au to see how the Early Intervention Return to Work service can benefit your business.

ATO workers compensation ruling

On 17 December 2025, the ATO published a class ruling relating to the settlement of a workers compensation claim in the WA workers compensation scheme (Workers Compensation and Injury Management Act 2023 (The Act)).

A class ruling is a public ruling made by the ATO to explain how a relevant provision of the tax law will be applied (how it will treat tax returns) and is designed to give broad guidance and avoid the need for a whole series of private rulings.

In short, income compensation commuted to a lump sum in a settlement agreement will be taxable as ‘ordinary income’. That might be where the amount awarded is only for lost income, or where it forms part of the total compensation. The lump sum part of the settlement that is for lost income must be included in a worker’s tax return as income in the year it was received.

The ruling applies to lump sum amounts for compensation payments to workers from 1 July 2024.

Workers compensation

Workers compensation is a form of insurance payment to employees who are inured at work or become sick due to their work for:

wages while they are not able to work
medical expenses and rehabilitation.

The class ruling applies to that portion of the payment that relates to income. Payments for things like medical expenses and workplace rehabilitation are not included – they are not ordinary income.

Implications

There are a number of expected implications of the new ruling including the potential for significant delays and increased costs:

The WorkCover WA report indicates a sharp quarter on quarter claims cost increase since the implementation of The Act
some insurers and plaintiff law firms have suspended settlements while determining next best steps/responsibilities
previous tax savings on settlements will no longer be realised which will see an increase in settlement costs for claims.

Jackson McDonald Lawyers posted a LinkedIn article after the ruling identifying eight key implications including the likelihood of workers negotiating settlement seeking a higher amount for income compensation; higher payouts and more regulatory review likely leading to higher premiums; and other various requests from workers seeking to structure and time payments in order to minimise the tax impacts and/or liability. They advise ‘Insurers should be cautious about agreeing to a division of the settlement sum requested for this sole purpose (of limited potential tax liability).’

Further information: