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NSW psychological injury Workers Compensation changes from 1 July 2026
Clinically reviewed by Matt Semsar, Registered Psychologist · AHPRA: PSY0002620326 · SIRA Provider No. 24705 · Reviewed 16 September 2026
The key point: NSW introduced new rules for primary psychological injury claims first notified on or after 1 July 2026. A primary psychological injury must now be caused by a defined relevant event, have a real and direct connection to employment, and have employment as the main contributing factor. Claims involving bullying, sexual harassment, racial harassment or excessive work demands follow a separate relevant conduct pathway. This page explains the changes in plain language. It is general information, not legal advice.
The July 2026 reforms changed both the eligibility test for many primary psychological injuries and the way some claims are started and assessed. For workers, one of the most important practical changes is that a claim involving relevant conduct does not move forward in the same way as an ordinary injury notification. A completed claim form and prescribed minimum information are required before the relevant conduct claim enters its determination period.
This guide focuses on the new eligibility rules and the relevant-conduct claims pathway. Other 2026 reforms also affect matters such as reasonable management action, impairment thresholds and the duration of some entitlements. Those issues can depend on the date and circumstances of a claim, so current SIRA information should be checked where they are relevant.
Who do the new psychological injury rules apply to?
The new rules apply to primary psychological injuries first notified to the employer on or after 1 July 2026. SIRA defines a psychological injury for these purposes as a mental or psychiatric disorder that causes behavioural, cognitive or psychological dysfunction.
The new primary-injury rules do not apply in the same way to every worker or every psychological presentation. SIRA identifies exclusions including exempt workers such as police officers, paramedics and firefighters, coal miners, volunteers, dust disease claims, primary psychological injuries notified before 1 July 2026, and secondary psychological injuries that arise because of a physical injury.
Why this matters: Two workers with similar symptoms can be on different claims pathways depending on what caused the injury, when it was first notified and the worker category involved.
What must a primary psychological injury be caused by?
For compensation to be payable for a primary psychological injury under the post-July 2026 rules, SIRA states that the injury must be caused by a relevant event or series of relevant events, there must be a real and direct connection between the event and employment, and employment must be the main contributing factor to the injury.
Relevant events include:
- an act or threat of violence
- indictable criminal conduct
- witnessing a traumatic incident
- vicarious trauma
- the death of a person in the worker's care, where the additional statutory requirements are met
- bullying
- sexual harassment
- racial harassment
- excessive work demands.
The final four categories are described as relevant conduct. They have a separate claims pathway from the other relevant events.
How does reasonable management action fit in?
The 2026 reforms also expanded and clarified the reasonable management action defence. Even where a worker has a primary psychological injury connected with a relevant event, compensation may still be disputed if reasonable management action, a worker's expectation of reasonable management action, or a worker's perception of reasonable management action was a significant cause of the injury.
SIRA gives examples such as managing absences, providing performance feedback, investigating misconduct, changing duties, addressing behavioural issues and implementing workplace policies. The action must still be carried out in a reasonable way. Whether this defence applies is a claims or legal question based on the particular facts; it is not determined by the treating psychologist.
What is a relevant conduct claim?
A relevant conduct claim is a claim for a primary psychological injury said to have been caused by bullying, sexual harassment, racial harassment or excessive work demands. For these claims, the worker must provide a completed and signed claim form together with prescribed minimum information.
This is an important change. For a relevant conduct claim, SIRA states that weekly payments and medical expenses are payable only from the date the insurer receives the completed claim form with the required minimum information.
If workplace behaviour is affecting your mental health and you want a broader clinical explanation of bullying, symptoms and treatment, see workplace bullying and psychological injury claims in NSW.
What information makes a relevant conduct claim complete?
In addition to basic worker, employer, treating doctor, injury, medical certificate and consent information, the claim must address any relevant court or tribunal proceedings and provide details of the alleged conduct.
Importantly, the legislation and SIRA guidance use the phrase “as far as reasonably practicable” when describing the details of the conduct that should be provided. This includes, as far as reasonably practicable:
- the specific nature of the conduct
- whether the conduct was repeated
- examples of specific incidents, including dates, times and locations
- the people involved
- the names of witnesses
- an explanation of how the conduct is connected to employment.
Minimum information is not the same as proving the claim. A completed claim starts the formal determination process. The insurer can then investigate liability and consider the worker's account, witness accounts, medical information, employer information and other relevant material.
What happens if information is missing?
If the insurer considers the relevant conduct claim incomplete, SIRA states that the insurer must contact the worker within 3 business days to explain what is missing and what is needed for the claim to move forward.
This stage can have practical consequences because the date the completed claim and minimum information are received is the date from which the relevant-conduct compensation pathway begins. If the worker is already psychologically unwell, uncertainty about what information remains outstanding can also become an additional source of stress.
What happens once the relevant conduct claim is complete?
Once the insurer receives a completed relevant conduct claim, it has 42 days to decide whether to accept or dispute liability. If the insurer does not make the decision within that period, SIRA states that the claim is taken to have been accepted.
During the determination period, the worker can receive:
- interim weekly entitlement payments, and
- up to $7,500 for medical or related treatment connected with the relevant injury.
SIRA also requires the insurer to tell the worker in writing that interim payments have commenced, when they will stop, what treatment can be accessed and that the insurer has 42 days to make its liability decision.
Why early treatment and clear communication matter
From a clinical perspective, the claims process and the treatment process are related but should not become the same thing. A worker may need treatment for significant anxiety, depression, panic, sleep disturbance, trauma symptoms or functional decline while factual and legal questions about the claim are still being investigated.
Early intervention can support symptom management, daily functioning and recovery. Prolonged uncertainty about claim status or treatment funding can itself add to psychological distress. Treating practitioners also need timely information about whether treatment is funded so that continuity of care can be managed appropriately.
What is the role of the treating psychologist?
A treating psychologist assesses and treats the worker's psychological presentation. This can include diagnosis, symptoms, functional impact, treatment needs and recovery goals. Clinical records and reports may assist the insurer, but therapy is not a workplace investigation and the treating psychologist does not decide whether the alleged conduct legally satisfies the workers compensation test.
In relevant conduct matters, keeping that distinction clear can help prevent treatment sessions becoming dominated by repeated attempts to reconstruct or prove the workplace dispute.
What if a relevant conduct claim is declined?
A worker who disagrees with a relevant conduct decision can ask the insurer to review it. For relevant conduct claims, an insurer review is required before the dispute can proceed to the Industrial Relations Commission or Personal Injury Commission.
Broadly, disputes about whether the alleged conduct meets the statutory definition of relevant conduct can proceed to the Industrial Relations Commission. Other disputed issues can proceed to the Personal Injury Commission. The appropriate pathway depends on the reasons for the insurer's decision, so workers considering a dispute should obtain current advice about their circumstances.
Current official information
The reforms are recent and SIRA notes that supporting guidance may continue to change as implementation progresses. For current scheme information, use the official sources below.
Frequently asked questions
No. The new primary psychological injury rules apply to claims first notified on or after 1 July 2026 and do not apply in the same way to exempt workers, coal miners, volunteers, dust disease claims, primary psychological injuries notified before 1 July 2026, or secondary psychological injuries that arise because of a physical injury.
A relevant conduct claim is a primary psychological injury claim said to have been caused by bullying, sexual harassment, racial harassment or excessive work demands. These claims have a separate process, including a mandatory claim form and prescribed minimum information.
No. Providing a completed claim form and the required minimum information allows the relevant conduct claim to proceed to the determination stage. The insurer then has 42 days to decide whether to accept or dispute liability.
Yes. Once a completed relevant conduct claim has been received, interim entitlements can include up to $7,500 for medical or related treatment connected with the relevant injury during the determination period, subject to the scheme rules.
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If you have a NSW Workers Compensation claim and are seeking psychological treatment for a workplace psychological injury, please call or email directly.
This page provides general NSW Workers Compensation information and a clinical perspective. It is not legal advice and does not determine whether a particular claim will be accepted. The reforms are recent and guidance may change. Check current SIRA information and obtain advice about your own circumstances where appropriate.