Workers
Compensation
Change the only constant – Mental injury, reform and AI
Rising claim costs continue to put pressure on workers compensation systems across Australia. Rising premiums reflect an increase in costly mental injury claims, forcing schemes to rethink recovery pathways. Major reforms across jurisdictions promise greater transparency and sustainability, yet risk introducing fresh disputes and uncertainty. Meanwhile, digital innovation is redefining claims management, with AI and analytics offering efficiency gains but demanding caution to avoid new pitfalls. With costs climbing, reforms unfolding and technology advancing, schemes are set for a defining transition. 
Charts
Summary of recent legislation changes by jurisdiction
| Jurisdiction | Bill / Act | Effective date | Key changes |
|---|---|---|---|
| NSW | Workers Compensation Legislation Amendment (Reform and Modernisation) Bill 2025 | NA – Under Legislative Council inquiry |  Tighter definitions and proof rules for psychological injury Higher WPI cut-offs for weekly pay and lump sums |
| Victoria | Workplace Injury Rehabilitation and Compensation Amendment Act 2025 | 06-Aug-25 | Expanded family benefits after workplace death (counselling, cleaning, higher pensions, provisional payments incl. suicide cases)New Code of Claimants’ Rights(fair and respectful treatment, 5-yearly independent scheme review) |
| Workplace Injury Rehabilitation and Compensation Amendment (WorkCover Scheme Modernisation) Act 2024 | 31-Mar-24 | Stricter eligibility for mental injury claims (excludes stress/burnout unless traumatic event) Weekly benefits after 130 weeks only if “no current work capacity | |
| Western Australia | Workers Compensation and Injury Management Act 2023 | 01-Jul-24 | Medical expenses cap doubled (30% → 60% of general limit) Weekly benefits extended (full rate for 26 weeks before step-down, previously 13) Excluded stress claims from “reasonable management action” unless harsh/unreasonable |
| Queensland | Workers’ Compensation and Rehabilitation and Other Legislation Amendment Act 2024 | 23-Aug-24 | Early intervention for physical injuries to prevent secondary mental injuries Accelerated weekly payments Extended cover to gig and taxi workers Extended presumptive coverage for firefighters – include 11 additional cancers |
| South Australia | Return to Work (Employment and Progressive Injuries) Amendment Act 2024 | 01-Dec-24 | Extended employer duty to provide suitable work Introduced formal request process for suitable duties, with one-month employer response deadline Earlier impairment assessments for dust/terminal illness claims |
| Tasmania | Workers Rehabilitation and Compensation Amendment Act 2023 | 07-Dec-23 | Confirmed Schedule 5 can be updated by regulation Extended presumptive coverage for firefighters – included additional cancers |
| Workers Rehabilitation and Compensation Amendment Act 2022 | 01-Mar-23 | More firefighter cohorts covered (broader “occupational firefighter” definition) Longer maximum period for weekly payments for older workers | |
| Northern Territory | Return to Work Amendment Regulations 2024 (No 9 of 2024) | 12-Jun-24 | Added 7 cancers to the firefighter presumptive list Explicitly included correctional officers in the definition of “first responder” Wider access to benefits |
| ACT | Workplace Legislation Amendment Act 2025 | 03-Jul-25 | Extends statutory permanent impairment benefits to silicosis cases |
| Workplace Legislation Amendment Act 2022 | 09-Jun-23 | Workers accrue annual and long service leave while on comp |
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