Information, training and resources to support IFNSW and TMF employers to prepare for workers
compensation reforms from July 2026.
We are currently navigating one of the most significant changes to the NSW workers compensation system in over a decade.
The two Bills passed by the NSW Parliament introduce substantial changes to how psychological injury claims are defined, assessed and managed.
It is important to recognise that the impact of the reforms will differ across agencies, and not all content will apply equally.
While changes to psychological injuries do not apply to Emergency Service Workers (Police Officers, Fire Fighters and Paramedics), all NSW Government Agencies employ corporate staff, meaning the practical implications of these reforms may extend across broader organisational processes, including documentation, workforce management and early intervention practices.
For reference, the full details of the legislation can be found here:
To understand what changes impact emergency service workers, click here
This hub has been designed as a centralised resource to support agencies across all claim cohorts. It brings together key information, tools and updates to help navigate the reforms and understand their practical impact
As eligibility thresholds become more clearly defined for workers claims, and expectations around evidence and documentation increase, there is an opportunity for all agencies to strengthen their approach to:
At this stage, while further guidance and regulations are still being finalised, the information within this hub reflects what we understand today and may be subject to change.
On this page you will find:
Guidance on what is
changing and what remains
the same
Resources tailored to
different agency types where
applicable
Tools to support claim
readiness, documentation
and early intervention
Ongoing updates as
further clarity emerges
We recommend downloading the reform readiness checklist and exploring the resources below.
| 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:
This creates an opportunity for agencies to strengthen their approach to:
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
Tools available to identify workplace needs:
Additional resources:
Reform impact: The reforms require consideration of employer provided information in claim determination within defined timeframes
EMlearning self-paced online courses (available exclusively at no cost to EML customers):
Additional resources:
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):
Additional resources:
Reform impact: The reforms require claim determination within defined timeframes, which includes consideration of information about workplace interactions and support provided
EMlearning self- paced online courses (available exclusively at no cost to EML customers):
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
EMlearning self- paced online courses (available exclusively at no cost to EML customers):
Additional resources:
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
EMlearning self- paced online courses (available exclusively at no cost to EML customers):
Free workplace resources:
Reform impact: The reforms introduce defined timeframes for claim determination, increasing the importance of providing relevant information in a timely manner
Facilitated employer training (available exclusively at no cost to EML customers):
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
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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 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
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.
Free Workplace Resources
Readiness check: Are exposure tracking, incident response and support processes consistent and clearly documented?
EMlearning self- paced online courses (available exclusively at no cost to EML customers):
Free Workplace Resources
Readiness check: Are critical incident exposures, frequency and types of events consistently captured and maintained?
Free Workplace Resources
Readiness check: Are incident records, supervisor notes and exposure summaries accurately maintained and accessible?
EMlearning self- paced online courses (available exclusively at no cost to EML customers):
Free Workplace Resources
Readiness check: Are leaders equipped to document key events, identify exposure and provide timely information to support claims?
EMlearning self- paced online courses (available exclusively at no cost to EML customers):
Free Workplace Resources
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.
Register your interest for our half-day event at the Fullerton Hotel, Sydney on 23 July.
This session brings together industry experts to provide practical insights on the reforms and what they mean for agencies in practice. This event is proudly funded by the Mutual Benefits Program and offered at no cost to EML customers.
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.
