ARTICLE · 08 OCTOBER 2025

Calls to improve amendments to NSW Workers Compensation Bill

Stacks Law Firm

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Proposed Bill raises thresholds & limits benefits for psychological injury claims, prompting criticism for unfairly restricting access to compensation & justice.

AustraliaEmployment and HR

Krystal Parisis

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A Workers Compensation Bill before the NSW Parliament would significantly change workers compensation laws, in particular the way psychological injury in the workplace is assessed and dealt with by authorities.

New Workers Compensation Bill aims to keep scheme sustainable

The original Workers Compensation Exposure Draft included provisions requiring people who experience sexual harassment or racial vilification in the workplace to prove it to the Industrial Relations Commission (IRC) before claiming compensation. (Please see Workers Compensation Legislation Amendment Bill 2025.)

When introduced to parliament, the Bill increased the psychological impairment threshold needed to access lump-sum payments from 20 to 31 per cent, and cut off benefits for psychological injuries after two and a half years.

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