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Psychological permanent impairment assessment in NSW Workers Compensation
The key point: This page relates to NSW Workers Compensation. From 1 July 2026, most workers will generally have one principal permanent impairment assessment per injury, and workers must obtain independent legal advice before being assessed. Permanent impairment assessment is separate from treatment and must be undertaken by an assessor regulated by SIRA.
Permanent impairment assessment is a specific part of the Workers Compensation claims process that some people encounter once an injury is considered sufficiently stable to assess. The rules changed from 1 July 2026, so older information about repeated assessments or pre-reform agreements may no longer describe the current pathway.
What permanent impairment assessment involves
The assessment considers the degree of permanent impairment caused by the work-related injury using the applicable SIRA assessment framework. For psychological injury, this is a medico-legal assessment rather than a therapy session and considers the lasting functional impact of the condition using recognised impairment criteria.
What changed from 1 July 2026
From 1 July 2026, most workers will generally have only one principal permanent impairment assessment per injury. During the interim period from 1 July 2026 to mid-2027, the existing process for arranging assessments continues, but the worker must obtain independent legal advice before the assessment takes place.
SIRA states that the legal advice should explain the effect the assessment may have on future Workers Compensation rights and entitlements. A further assessment is only available in limited circumstances where there has been an unexpected and material deterioration and the statutory requirements are met.
How it differs from treatment
This kind of assessment is separate from your ongoing psychological treatment. It has a specific administrative purpose within the claims process, rather than a therapeutic one, and is a single assessment rather than an ongoing relationship.
The role of your treating team
Your treating psychologist may be asked to provide clinical records or a treatment summary. The permanent impairment assessment itself is a separate medico-legal process and must be completed by an appropriately regulated permanent impairment assessor. Questions about the legal consequences of the assessment should be directed to an independent lawyer rather than the treating team.
Frequently asked questions
No. Not every claim reaches this stage. Whether an assessment is needed and what it may mean for your entitlements should be discussed with your insurer and an independent lawyer. Your treating team may provide clinical information but does not determine the legal consequences of the assessment.
The assessment must be conducted by an appropriately regulated permanent impairment assessor. Your treating psychologist may provide clinical information, but treatment and permanent impairment assessment are separate roles.
The principal assessment can affect entitlements including weekly payments, medical expenses, lump-sum compensation and access to other Workers Compensation pathways. Because of these consequences, independent legal advice is required before assessment under the post-1 July 2026 rules.
Scheme information reviewed: 20 August 2026.
Official information
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If you have general questions about how permanent impairment assessment relates to psychological treatment, please call or email directly.
This page provides general information about NSW Workers Compensation and is not legal advice. Permanent impairment rules can affect significant entitlements, and independent legal advice is required before a permanent impairment assessment under the post-1 July 2026 arrangements.