The NSW Government has passed a significant reform to the Workers’ Compensation legislation, heading off a projected 36% increase in employer premiums in part by raising the threshold for psychological injury claims.
The amendments include:
- Ensuring an 18-month restriction on average premium increases
- Incorporating revised whole person impairment (WPI) thresholds
- Introducing an intensive return-to-work program that provides an extra year of medical benefits and income replacement
- Empowering the Treasurer to lower the WPI threshold, if in the public interest
The effect of the amendments is to limit the duration of payments for all but the most serious primary psychological injuries to 130 weeks, and to increase the whole person impairment threshold to 25% from 1 July 2026, before rising to 26% and reaching a total impairment threshold of 28% by July 2029.
These legislative changes will come into effect from 1 July 2026 and greatly assist the sustainability of the NSW Workers Compensation scheme.
A link to the Bill is available here: Workers Compensation Legislation Amendment (Reform and Modernisation) Bill
For further assistance, please contact CCF NSW on 9009 4000.