We would like to share a brief update following yesterday’s developments in NSW Parliament, where a revised Workers Compensation Legislation Amendment Bill 2025 was passed. This Bill will introduce a number of changes to how the State’s workers compensation scheme functions including:
– New eligibility requirements for primary psychological injury claims
– A dedicated bullying and harassment jurisdiction within the NSW Industrial Relations Commission
– Replacement of the “reasonably necessary” test with a “reasonable and necessary” standard for medical entitlements
– A single whole person impairment (WPI) assessment process, replacing the current multi-assessment approach
– A merit-based test requiring legal representatives to certify reasonable prospects of success before commencing litigation
– Reduced weekly and medical benefits for primary psychological injuries assessed under 21% WPI
– Introduction of an employer excess covering up to two weeks of weekly entitlements
– Annual (rather than biannual) indexation of entitlements
The NSW Government will now determine the commencement dates for these changes. SIRA will also develop supporting regulations to give effect to the new legislation.
We will continue to keep you updated as further details are released.
