Victorian Scheme Modernisation

WorkSafe Victoria has implemented significant reforms to the WorkCover scheme under the Scheme Modernisation Act, effective from 31 March 2024. In response, these changes aim to balance sustainability with ongoing support for injured workers. Discover the key Victorian Schem Modernisation changes…

Key Changes Affecting Employers

1. Mental Injury Claim Eligibility

New criteria have been introduced for mental injury claims:?

With this update, injuries must now meet stricter DSM-based diagnostic standards involving notable dysfunction.
Employment as Predominant Cause – for a claim to be eligible, employment must be the primary contributing factor to the mental injury
Exclusion for Routine Stress – claims primarily caused by stress or burnout from typical work-related events are excluded. Importantly, exceptions exist for bullying, harassment, or traumatic event exposure.

2. Second Entitlement Period – Whole Person Impairment (WPI) Requirement

To continue receiving weekly payments beyond 130 weeks, workers must now:?

Have a WPI of 21% or more
Meet the existing capacity test requirements.

This applies to claims reaching the 130-week mark on or after 31 March 2024.

3. Operational Enhancements

Additional changes include:?

Information Sharing – improved ability for WorkSafe to share information across its business units
To enhance legal clarity, some disputes will transition from arbitration to judicial determination.
Independent Review – an expert panel will review the changes in 2027 to assess their effectiveness
Return to Work Advisory Committee – established to guide return-to-work initiatives

Implications for Employers

It is recommended that Employers should:?

Review and Update Policies – ensure workplace policies reflect the new eligibility criteria
Enhance Support Systems – strengthen mental health support and return-to-work programs
Stay Informed – keep abreast of further updates and guidance from WorkSafe Victoria

Need Help?

ABILITY GROUP remains committed to assisting businesses in navigating these reforms and maintaining compliant, supportive workplaces. Contact us to discuss.