Claims
Resource Hub

NSW Workers Compensation Reform Hub

Information, training and resources to support IFNSW and TMF employers to prepare for workers
compensation reforms from July 2026.

We are currently navigating some of the most significant changes to the NSW workers compensation system in over a decade.
Recent legislative changes introduce a range of reforms impacting workers, employers and service providers across the NSW workers compensation scheme.
The practical impact of these changes will vary across agencies and worker cohorts. This HUB has been designed to provide access to the latest information, resources and guidance to help agencies understand the changes and support recovery and return to work outcomes.
For reference, the full details of the legislation can be found here:
To understand what changes impact emergency service workers, click here

Supporting NSW Agencies

Reasonable and Necessary Changes

Effective 1 October 2026

Changes to NSW workers compensation legislation introduce new Reasonable and Necessary requirements for assessing treatment and support requests.

The changes apply to treatment requests received on all claims or after 1 October 2026, including requests made on existing claims.

Understanding the key changes

Understanding the Four Considerations

When determining whether treatment is reasonable and necessary, consideration will be given to whether:

  • The primary purpose of the treatment is to treat the compensable injury
  • The treatment is clinically justified, including evidence of, or anticipated, reduction in symptoms and improvement in functional capacity
  • The treatment provides value for money, having regard to the actual or anticipated outcomes of treatment
  • Cost-effective alternatives and accessible treatment options have been explored

Supporting recovery, functional improvement and positive outcomes for workers remain important considerations when treatment requests are reviewed.

Other Key Changes

Commutation Changes

Changes to commutation provisions may impact worker eligibility and claim settlement arrangements in certain circumstances.

Permanent Impairment Changes

Changes to permanent impairment provisions may impact access to lump sum compensation for some non-exempt workers.

Resources Available

The resources below have been developed to support agencies in understanding legislative changes, their practical implications and approaches to supporting recovery and return to work outcomes.

Download the fact sheets

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Psychological Injuries - Key Differences: Workers vs Emergency Services Workers

Area Workers Emergency Services Workers (Police Officers, Fire Fighters, Paramedics)
Eligibility test Must meet defined trauma or conduct event Not subject to defined event test
Causation Employment must be main contributing factor Employment must be a substantial contributing factor
Claim basis Defined event (trauma or conduct) All psychological mechanisms
Documentation focus Evidence aligned to the statutory elements for each
relevant event and reasonable management action		 Exposure history and clinical evidence
Timeframes 42-day liability decision (conduct claims)
Standard claims process (trauma claims)		 Standard claims process
WPI impact Linked to entitlement thresholds and duration
(Relevant for physical injury claims, but applied differently)		 No link to entitlement threshold and duration

What This Means for Agencies

Across both cohorts, the reforms signal a broader shift toward:

  • Evidence-based decision making
  • Clear documentation of workplace factors
  • Early intervention and risk management

This creates an opportunity for agencies to strengthen their approach to:

  • Preventing psychological injury
  • Supporting worker wellbeing
  • Improving documentation and decision-making capability

Reform Impact and Resources (Clearer definitions of trauma, harassment, bullying, excessive work demands and reasonable management)

Readiness check: Are relevant policies, procedures, risk mitigation and workplace training up to date?

Reform impact: The reforms clarify key definitions (e.g. harassment, bullying, work demands) and reinforce the application of reasonable management action in claim assessment

  • Greater clarity on how workplace behaviours and actions are assessed
  • Importance of aligning policies and practices to these definitions

Tools available to identify workplace needs:

Additional resources:

Reform impact: The reforms require consideration of employer provided information in claim determination within defined timeframes

  • Emphasis on timely and accurate documentation to the relevant event
  • Employer records form part of the information used in liability decisions

 

EMlearning self-paced online courses (available exclusively at no cost to EML customers):

  • Bullying & Harassment in the Workplace – for Leaders
  • Conflict Resolution in the Workplace
  • Duty of Care for Leaders

 

Additional resources:

Increased emphasis on psychological risk prevention and early intervention

Readiness check: Are psychosocial risk assessments and early intervention return to work practices regularly reviewed and implemented?

While not directly driven by legislative change, strengthening psychosocial risk management and early intervention practices supports overall injury prevention and may assist agencies in preparing for changes to psychological injury claim assessment.

EMlearning self- paced online courses (available exclusively at no cost to EML customers):

  • Risk Management of Psychosocial Hazards
  • Bullying & Harassment in the Workplace – for Workplaces
  • Bullying & Harassment in the Workplace – for Leaders
  • Managing Risk in the Workplace for Leaders
  • Duty of Care for Workers
Additional resources:

Reform impact: The reforms require claim determination within defined timeframes, which includes consideration of information about workplace interactions and support provided

  • Leader actions in recognising and responding to distress may form part of information considered in claim assessment
  • Importance of recording interactions where support is identified or offered
  • Supports provision of relevant information within required timeframes

EMlearning self- paced online courses (available exclusively at no cost to EML customers):​

  • Approaching an employee you are concerned about
  • Managing Psychological Conditions in the Workplace
  • Introduction to Psychological Resilience


Partners with support and resources available:

Free Workplace Resources

Reform impact: The clarified reasonable management action framework requires workplace actions (e.g. performance management, feedback, disciplinary processes) to be applied consistently and in a reasonable manner

  • Importance of clear and factual documentation
  • Consistency in application of workplace processes

 

EMlearning self- paced online courses (available exclusively at no cost to EML customers):​

  • Approaching an employee you are concerned about
  • Managing Psychological Conditions in the Workplace
  • Introduction to Psychological Resilience
Reform impact: The reforms include increased focus on recovery and the role of both employer and worker in the claims processre
  • Emphasis on ongoing engagement and support
  • Alignment between injury management and recovery outcomes

Additional resources:

Faster liability determinations for relevant conduct claims

Readiness check: Can relevant information be easily provided to the insurer on lodgement of the claim, to ensure 42 day liability determination timeframes can be met?

Reform impact: The introduction of a 42-day liability decision timeframe for certain claims requires timely provision of relevant information

  • Need for accessible and complete records
  • Expectation to provide relevant information early in the claim process
  • Delays or incomplete information may impact claim determination

EMlearning self- paced online courses (available exclusively at no cost to EML customers): ​​

  • Conflict resolution in the workplace

Free workplace resources:

Reform impact: The reforms introduce defined timeframes for claim determination, increasing the importance of providing relevant information in a timely manner

  • Timely response to insurer requests
  • Use of factual information (e.g. statements, records) in claim assessment
  • Access to relevant staff and information supports decision-making

Facilitated employer training (available exclusively at no cost to EML customers):

  • Coming in Q3 2026 – Navigating psychological claim investigations
Reform impact: The reforms introduce changes to entitlements, including interim payments and time-limited benefit structures for psychological claims (excl Emergency Services Workers)
  • Introduction of interim payments (e.g. 75% PIAWE) whilst conduct claims are being investigated
  • Increased WPI thresholds, to determine access to ongoing benefits
  • Potential implications for agencies with mixed workforces

Reform impact: The reforms update the “reasonable and necessary” test used to assess treatment and support, replacing the previous “reasonably necessary” terminology. We anticipate this reform will commence from 1 October 2026

  • Applies to the assessment of treatment and support for all claims
  • Relevant across both Workers and Emergency Services Workers
  • Supports determination of appropriate and evidence-based treatment provision

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Emergency Services Agencies - What the Reforms Mean

The recent legislative changes to psychological injury claims do not apply to Emergency Services workers such as Police Officers, Fire Fighters and Paramedics and continue to operate under existing legislative frameworks. The reforms introduce clearer distinctions between workers and Emergency Services Workers claim pathways, increasing the importance of applying the correct framework, particularly in agencies with mixed workforces. While the legislative framework for Emergency Services workers remains unchanged, the reforms introduce broader scheme changes that increase the importance of clearly demonstrating exposure, maintaining consistent documentation, and applying the correct claim framework across mixed workforces.

Reform impacts (Emergency Services Workers)

Reform impact: The reforms update the “reasonable and necessary” test used to assess treatment and support, replacing the previous “reasonably necessary” terminology. This reform will commence from 1 October 2026

  • Applies to the assessment of treatment and support for all injury claims
  • Relevant across both Emergency Services and Workers
  • Supports determination of appropriate and evidence-based treatment provision

Readiness check: Do teams understand how psychological injury claims are assessed, including the role of exposure, work-related events and medical evidence?

Reform impact: Clear distinction between Workers (defined event test) and Emergency Services Workers claim pathways, that are assessed under different legislative frameworks.

  • Avoid misapplication of newly introduced eligibility tests
  • Reinforces consideration of relevant work-related events, including exposure along withmedical evidence
  • Increases importance of applying the correct assessment framework
  • Managing Psychological Injury in High-Risk Roles
  • Strengthening Exposure Awareness and Documentation
  • Building Stronger Documentation and Evidence Practices
  • Strengthening Manager and Leader Capability
  • Strengthening existing frameworks

 

Free Workplace Resources

Readiness check: Are exposure tracking, incident response and support processes consistent and clearly documented?

  • Assessment considerations: The legislative framework for emergency services workers continue to rely on establishing a connection between work-related exposure and psychological injury
  • Demonstration of how injury is linked to work
  • Consideration of exposure in the context of the role

 

EMlearning self- paced online courses (available exclusively at no cost to EML customers):​

  • Approaching an employee you are concerned about
  • Managing Psychological Conditions in the Workplace
  • Introduction to Psychological Resilience

 

Free Workplace Resources

Readiness check: Are critical incident exposures, frequency and types of events consistently captured and maintained?

  • Assessment considerations: Evidence of exposure remains central to the assessment of psychological injury claims for emergency services workers
  • Requirement to demonstrate relevant exposure through recorded information
  • Exposure supported through incident records and documentation

 

Free Workplace Resources

Readiness check: Are incident records, supervisor notes and exposure summaries accurately maintained and accessible?

  • Assessment considerations: Documentation forms part of the information considered in claim assessment for Emergency Services Workers
  • Use of contemporaneous records where available
  • Documentation supports assessment of work‑related issues, including interpersonal matters, workload and other workplace factors

 

EMlearning self- paced online courses (available exclusively at no cost to EML customers): ​​

  • Injury management and prevention for leaders 

 

Free Workplace Resources

Readiness check: Are leaders equipped to document key events, identify exposure and provide timely information to support claims?

  • Assessment considerations: Employer-provided information, including manager records, is considered in claim assessment
  • Manager documentation supports understanding of workplace context
  • Timely and accurate records assist decision-making

EMlearning self- paced online courses (available exclusively at no cost to EML customers):​

  • Bullying & Harassment in the Workplace – for Workplaces​​
  • Bullying & Harassment in the Workplace – for Leaders​​
  • Approaching an employee you are concerned about​
  • Managing Psychological Conditions in the Workplace​
  • Introduction to Psychological Resilience

Free Workplace Resources

We're here to help

While the psychological injury reforms primarily impact non-exempt workers, it is important to recognise that many government agencies employ both exempt and non-exempt staff. As a result, elements of the reforms may also impact corporate and support functions within these organisations.

Mutual Benefits

Through our Mutual Benefits Program our customers can access a range of complimentary training and events.

Supporting Agencies Through Reform

EML, Allianz and icare REX have worked together to deliver a coordinated
webinar series supporting agencies through the NSW workers compensation reforms.

The sessions provide practical information on the legislative changes,
agency and Claims Service Provider roles, implementation considerations and common scenarios.

Access the recordings and resources: Login | icare

More training and resources

EML is partnering with icare REX and Allianz to deliver a coordinated series of webinars and educational resources to support NSW Government agencies in preparing for the implementation of the reforms.