Updated 6 October 2026 | Reviewed by Julie Ring, Director, ABILITY GROUP | National overview for Australian employers

Workers compensation reforms can affect employer premiums, claim procedures, injury management and return-to-work responsibilities. The changes are not uniform across Australia: the relevant rules depend on the scheme, injury and claim notification dates, policy terms and employer arrangements.

In 2026, NSW has introduced significant changes in stages. Victoria and Queensland also have developments employers should monitor. Reviewing your policies, claims and injury-management arrangements can help identify where your business needs to respond.

NSW: key reforms now affect employers

NSW reforms commenced in stages. SIRA advises that different rules can apply depending on the type of injury and when it was notified.

• Psychological injury claims: New eligibility requirements, thresholds and some entitlement changes apply to primary psychological injury claims first notified on or after 1 July 2026. Employers must continue to notify the insurer within 48 hours of becoming aware of an injury, including a psychological injury.
• Medical and related treatment: Changes to the reasonable and necessary test commenced on 1 October 2026. Employers should ensure claim discussions and escalation processes reflect current guidance.
• Premiums and claims excess: icare premium rates are frozen for 2026–27 and 2027–28, but an individual employer’s premium may still change with wages, business activity or claims experience. A new excess applies to certain weekly-entitlement claims under policies issued or renewed on or after 4 pm on 30 June 2026.
• Insurance and injury management: NSW has increased penalties for not holding required insurance and introduced an under-insurance offence. The penalty for failing to provide suitable work where reasonably practicable has also increased.

The exact effect depends on the employer’s policy, scheme arrangements and claim circumstances. Review the current SIRA reform FAQs and key changes for employers before changing a process.

Victoria: return-to-work and scheme changes

Victoria’s Workplace Injury Rehabilitation and Compensation Amendment Act 2025 introduced obligations concerning approved training and reasonable facilities and assistance for return-to-work coordinators. Employers with a coordinator should check current WorkSafe requirements and confirm their arrangements remain suitable.

A further Victorian Act received Royal Assent in 2026. Some changes commenced in October 2026, while several changes affecting self-insurers, financial guarantees and health and safety representation are scheduled for later commencement unless proclaimed earlier. Employers should distinguish changes already in force from future changes when planning.

See WorkSafe Victoria’s guidance on changes to the WIRC Act and the 2026 Act and commencement dates.

Queensland: keep an eye on regulatory updates

Queensland’s scheme operates under the Workers’ Compensation and Rehabilitation Act 2003 and the Workers’ Compensation and Rehabilitation Regulation 2025. Since 1 January 2025, insurers must provide approved information statements to injured workers and employers after a claim is lodged. Queensland also announced an independent review of its scheme in 2026; employers should monitor regulator updates rather than treating review proposals as current law.

Check WorkSafe Queensland’s current workers’ compensation laws and guidance for the latest requirements.

What employers should review now

For employers operating in one or more jurisdictions, consider whether your current arrangements still match the rules and risks that apply to your workforce:

• Confirm the relevant scheme and insurer for employees who work across state borders.
• Check how policy renewal dates, wage declarations, claims experience and any applicable excess affect premium planning.
• Review who receives injury notifications, how promptly the insurer is notified and how claim updates are escalated.
• Check that return-to-work coordination, suitable duties and manager guidance reflect current requirements.
• Compare claims, premium and return-to-work trends across states so emerging issues are visible to the people responsible for the program.

These are review prompts, not a substitute for scheme-specific advice. Transitional rules can be important, particularly where a claim is notified near a commencement date.

When to seek a workers compensation program review

A program review can help employers understand how reforms interact with their claims, premiums, governance and return-to-work practices. It is particularly useful for multi-state employers, businesses with changing workforce or wage profiles, and organisations seeing unexpected premium movement or recurring claim barriers.

Learn about a Workers Compensation Program Review or speak with WCS about your organisation’s situation.

Frequently asked questions

Are workers compensation reforms the same across Australia?

No. Each state, territory and Commonwealth scheme has its own legislation, regulator and commencement dates. Employers with workers in multiple jurisdictions need to check the rules for each relevant scheme.

Which NSW claims are affected by the 2026 reforms?

It depends on the claim type and relevant dates, including when an injury was notified. Employers should use SIRA’s current guidance or seek scheme-specific advice before applying a rule to an individual claim.

Does the NSW premium rate freeze mean every employer’s premium stays the same?

No. icare says rates are frozen for the stated policy years, but an employer’s individual premium may still move with wages, business activity or claims experience.

Should employers wait until a claim occurs before reviewing their processes?

No. Reviewing notification pathways, responsibilities and return-to-work arrangements in advance can help teams respond consistently when an injury occurs.

Official guidance

• Safe Work Australia: recent scheme developments
• SIRA: NSW reform FAQs
• WorkSafe Victoria: WIRC Act changes
• WorkSafe Queensland: workers’ compensation laws

Information checked 6 October 2026. This article is general information, not legal, insurance or claim-specific advice. Check the current regulator guidance for the relevant jurisdiction.

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