NSW Return to Work Is Changing

NSW Return to Work Is Changing

by | Apr 6, 2026 | Breaking News, Claims, Injured Worker, Our team, Reforms, Return To Work, Work Health & Safety

The landscape of workplace injury management in New South Wales is undergoing a significant transformation. For years, return to work (RTW) outcomes have been trending downward, creating challenges not only for injured workers but also for employers, insurers, and the broader community. Recognising the urgency of this issue, the State Insurance Regulatory Authority (SIRA) has released its Return-to-Work Roadmap 2026–28, a comprehensive plan to reverse declining outcomes and embed recovery at work as the cornerstone of the workers' compensation system.

This reform period represents both a challenge and an opportunity for employers. The roadmap signals heightened expectations, closer regulatory oversight, and a shift toward capability?based injury management. Employers who act early, invest in supportive leadership, and embrace person?centred practices will not only reduce claim costs but also foster healthier, more resilient workplaces.



Why Return to Work Is Under the Spotlight

SIRA’s data shows RTW performance in NSW has fallen since 2016–17. At 13 weeks post?injury, RTW rates have dropped from 88% to 79%, equating to more than 45,000 additional people not working who otherwise may have recovered at work.

The Roadmap recognises that poor RTW outcomes are rarely caused by the injury alone. Recovery is shaped by four interconnected domains:

  • Personal factors (beliefs, expectations, psychological distress)

  • Workplace factors (supervisor response, suitable duties, culture)

  • Insurance/system factors (early contact, timely decisions)

  • Health care factors (evidence?based, work?focused treatment)

Crucially, many of these factors are modifiable, especially in the first four weeks following injury.

Early Intervention: The Non?Negotiable Priority

One of the strongest messages in the Roadmap is that early intervention is failing and must improve. Currently, fewer than 25% of claims receive an effective early risk assessment, and opportunities for recovery at work are often missed.

For employers, this reinforces critical obligations:

  • Make early contact with the injured worker

  • Identify suitable duties immediately

  • Begin RTW planning within days, not weeks

Evidence shows that after 45 days away from work, a worker’s chance of returning drops to 50%. Delayed engagement—whether intentional or not leads to higher claim costs, longer absences, and increased risk of job detachment.

Psychological Injury: A Growing Risk

Psychological injury claims account for only 10% of claims but 26% of total claim costs in NSW. RTW outcomes are significantly poorer, with just 40% returning at 13 weeks compared to 85% for physical injuries.

The Roadmap highlights that 70% of psychological injury claims stem from preventable workplace factors, including:

  • Excessive work pressure

  • Poor supervisor behaviour

  • Bullying and harassment

  • Inadequate support after injury notification

For employers, the message is clear: RTW performance is inseparable from workplace culture and leadership capability. Prevention, early support, and psychologically safe work design are now central to managing workers compensation risk.

Small and Medium Employers: The Biggest Challenge

SIRA’s data shows a significant gap in RTW outcomes by employer size. At 13 weeks:

  • Large employers (>200 workers): 82% RTW

  • Medium employers (20–200): 80% RTW

  • Small employers (1–19): just 69% RTW

Small businesses often lack dedicated RTW systems or confidence navigating insurer processes. In response, SIRA will expand employer?focused initiatives, including outbound support and simplified RTW guidelines. However, regulators are clear: lack of experience is no longer an excuse for poor RTW practices.

What Employers Should Do Now

The Roadmap positions employers as a central lever for improving outcomes. Practical steps include:

  1. Train supervisors to respond positively and confidently to injury

  2. Document RTW plans early, even for minor injuries

  3. Offer suitable duties creatively, not restrictively

  4. Stay connected with injured workers, regardless of work capacity

  5. Partner early with rehabilitation providers when risk factors emerge

SIRA will increasingly monitor lead indicators such as early contact, RTW planning, and provision of suitable work—not just end outcomes.

A Shift from Compliance to Capability

The Roadmap signals a decisive shift away from checkbox compliance toward capability?based injury management. Employers who invest in early intervention, leadership confidence, and recovery?at?work practices will be best positioned as regulatory scrutiny intensifies.

At ABILITY GROUP, we see this Roadmap as an opportunity for employers to reduce risk, strengthen workplace culture, and achieve better business outcomes through improved recovery at work.

Further Reading

For more on evidence?based recovery at work principles, see the Australasian Faculty of Occupational & Environmental Medicine – Realising the Health Benefits of Work (Royal Australasian College of Physicians), a widely recognised authority referenced by SIRA.

Further Information

Source: SIRA

Title: New roadmap to help more injured workers return to work

Read time: 5+ mins

The Psychological Injury Claims Rise

The Psychological Injury Claims Rise

by | Apr 6, 2026 | Breaking News, Consulting, Human Resources, Mental Health, Our team, Return To Work, Work Health Program, Workplace safety

Recent data shows a sharp increase in claims related to mental health conditions such as depression, anxiety, PTSD, and chronic stress. In the UK, psychological injury claims (excluding whiplash) rose by 34.6% year-on-year, while whiplash claims with psychological components increased by 13.6%. These figures reflect a broader global trend: mental health is no longer a silent issue; it’s a legal and operational reality.

Why are Psychological Injury Claims are rising?

Several factors are driving this surge:

  • Workplace Harassment and Bullying: Employees are more aware of their rights and more willing to report toxic environments.

  • Hybrid Work Challenges: Remote work can blur boundaries, increase isolation, and reduce access to support.

  • Greater Mental Health Advocacy: Societal shifts have encouraged individuals to seek help and hold employers accountable.

  • Legal Recognition: Courts are increasingly recognizing emotional distress and psychological harm as legitimate grounds for compensation.

Is Your Workplace Prepared?

Ability Group and similar organizations must ask: Are we equipped to prevent, manage, and respond to psychological injury claims? Here’s what readiness looks like:

1. Proactive Mental Health Policies

Implement clear policies that define psychological safety, outline reporting procedures, and ensure confidentiality.

2. Training for Managers

Equip leaders to recognize signs of distress, respond empathetically, and avoid behaviors that could be construed as harassment.

3. Access to Support Services

Offer Employee Assistance Programs (EAPs), mental health days, and access to counseling or therapy.

4. Safe Reporting Channels

Create anonymous and secure ways for employees to report psychological harm without fear of retaliation.

5. Documentation and Risk Assessment

Regularly assess psychosocial risks in the workplace and document interventions to demonstrate compliance and care.

Legal and Financial Implications

Failure to address psychological risks can result in costly claims, reputational damage, and loss of talent. Legal experts warn that employers who neglect mental health may face increased litigation and regulatory scrutiny.

Moving Forward with Confidence

For Ability Group, the path forward is clear: embed psychological safety into the core of workplace culture. This isn’t just about avoiding claims, it’s about creating a resilient, compassionate, and high-performing organisation.

Contact our team to discuss.

Sources:
DWF Group – Navigating the Latest Challenges: Psychological Injury in Claims
Fund Capital America – Anticipated Trends in Personal Injury Law for 2025

 

Workers’ Comp Crisis Highlights ABILITY GROUP’s Role

Workers’ Comp Crisis Highlights ABILITY GROUP’s Role

by | Mar 16, 2026 | Rehabilitation, Return To Work, Work Health & Safety, Workers Compensation

The latest icare annual report reveals a chilling reality: New South Wales’ workers’ compensation scheme is facing a $3.2B underwriting loss, representing a significant deterioration from the prior year’s $2.81B loss. Driving this result is a 20% surge in psychological injury claims, which have doubled since 2022. These aren’t minor issues; they’re severe, long-duration cases rooted in bullying, harassment, and workplace stress. This downward spiral isn’t just a financial headline; it highlights how ill-equipped many organisations are to proactively manage complex claims, particularly those involving psychological issues.

Why Specialist Intervention Matters

According to Insurance News, psychological claims are among the most challenging: recovery is slower, return to work timelines stretch, and costs escalate disproportionately.

ABILITY GROUP champions a people-first philosophy in claims management, combining tailored strategy development with ongoing program reviews. Our team of workers’ compensation, WHS, and injury management specialists understand the full spectrum of modern claims from technical to personal aspects.

Often, without intentional intervention, workers compensation premiums can spiral seemingly out of control, and costs mount unchecked, a trend the NSW scheme visibly suffers from now.

ABILITY GROUP’s Approach

Our specialist team help businesses of all sizes across Australia navigate workers compensation, people, health and safety-related matters. Each client is unique, and we therefore tailor our approach to each client's specific circumstances and needs. In general terms, we advocate

    • Early Intervention - early intervention with psychological claims is critical in helping reduce claim duration and financial impact
    • Prevention - workplace culture is an important aspect aligned with government initiatives to curb mental injury risk. Employee consultation, training and professional support help nurture positive workplace cultures
    • Performance - lower claim frequencies, stronger return to work rates, and premium stabilisation are often measurable outcomes of ABILITY GROUP’s support and/or strategic initiatives/programs

Employers Blueprint

While NSW and other states/territories are implementing reforms targeting thresholds and entitlements, businesses shouldn’t wait for legislation. With psychological injuries and resulting workers compensation claims rapidly increasing, any unprepared employers are in serious peril, according to insurancenews.com.au.

ABILITY GROUP offers a comprehensive first line of defence, from upfront program design and auditing to end-to-end claim management and return-to-work coordination (abilitygroup.com.au). For MSMEs and corporates alike, this is more than risk mitigation; it’s a competitive edge in controlling their largest and most volatile insurance cost.

In an environment where losses reach billions and reforms will take time, leveraging expert support today rather than waiting for claims and premiums to increase tomorrow is smarter business.

ABILITY GROUP’s message is compelling: with the right partner, you can reclaim control. Not just for your workers’ wellbeing, but for your business' future success.

Need Help?

Ready to take control of your workers’ compensation costs and protect your people? ABILITY GROUP is provides businesses/organisations of all sizes across Australia with specialist support and advice, including, but not limited to, injury prevention, workers compensation claims management, return to work planning, WHS, workplace rehabilitation and tailored other specialist programs. Contact us to discuss today!

Further Information

Source: icare

Title: icare Annual Reports

Read Time: 30+ minutes

Source: insurancenews.com.au

Title: State’s workers’ comp underwriting loss deepens

Read Time: 5 mins

Return to Work After Injury

Return to Work After Injury

by | Mar 9, 2026 | Injury Management, Return To Work, Workers Compensation

A workplace injury can be disruptive for everyone involved. For injured workers, it often brings uncertainty, anxiety and concern about re?injury. For employers, it raises questions about legal obligations, productivity impacts and how best to support recovery without increasing risk.

 

Best Practice Guidance for Australian Employers

Australian evidence is clear: safe, early and well?managed return to work (RTW) leads to better health outcomes, lower claim costs and stronger workplace relationships. When done well, work itself becomes a critical part of rehabilitation.

This article outlines best?practice return to work principles, grounded in guidance from Australia’s leading regulators and medical bodies, and explains how employers can play an active role in achieving sustainable outcomes.

Why Return to Work Matters

Research consistently shows that remaining connected to work, or returning as soon as medically appropriate, improves physical, psychological and social recovery outcomes.

Safe Work Australia and Comcare highlight that prolonged absence from work is associated with poorer health, increased risk of long?term disability and reduced likelihood of ever returning to employment.

The health benefits of good work include:

  • Maintaining physical capacity and reducing deconditioning
  • Supporting mental wellbeing and social connection
  • Providing routine, purpose and financial security
  • Reducing the risk of long?term work disability

Importantly, a worker does not need to be fully recovered to return to work. Suitable duties and graduated hours allow recovery to continue safely while maintaining engagement with the workplace.

Employer Legal Obligations in NSW

In New South Wales, all employers have legislated return to work obligations under workers compensation laws.

icare and the State Insurance Regulatory Authority (SIRA) confirm that employers must:

  • Have a Return to Work Program in place
  • Provide meaningful suitable duties where reasonably practicable
  • Participate in the worker’s injury management and RTW planning
  • Support recovery at work as soon as capacity allows

Employer obligations vary depending on whether the business is classified as a Category 1 or Category 2 employer, but the underlying expectation remains the same: active employer involvement improves outcomes.

Key Principles of Effective Return to Work

1. Early Notification and Early Contact

Early reporting of injuries and prompt contact with the injured worker sets the tone for recovery. icare research shows that workers who feel supported early are more likely to return to work sooner and experience better overall outcomes.

A simple check?in to express concern, explain next steps and outline available support can significantly reduce fear and disengagement.

2. Collaboration with Treating Practitioners

General Practitioners play a pivotal role in return to work decisions. The Royal Australian College of General Practitioners (RACGP) advises that work should be considered a therapeutic outcome, not something delayed until recovery is complete.

Employers can assist by:

  • Providing clear job descriptions
  • Offering information about available suitable duties
  • Participating in case conferences where appropriate

This collaboration helps doctors make informed capacity decisions and supports practical RTW planning.

3. Suitable Duties and Graduated Return

Providing suitable duties is one of the most effective tools employers have to support recovery.

According to icare, suitable duties should:

  • Match the worker’s current medical capacity
  • Be meaningful and productive
  • Be reviewed and upgraded regularly as capacity improves
  • Aim to progress the worker toward their pre?injury role wherever possible

Graduated hours and duties allow workers to rebuild confidence and tolerance while reducing the risk of re?injury.

4. Good Communication and Monitoring

Sustainable return to work relies on clear, respectful and consistent communication between all parties—worker, employer, insurer, treatment providers and rehabilitation consultants.

Warning signs that RTW may be at risk include:

  • Worker disengagement or frustration
  • Delays in medical upgrades
  • Breakdown in employer?worker relationships
  • Lack of clarity around duties or expectations

Regular check?ins and proactive problem?solving help address issues before they escalate into long?term claims.

Psychological Injuries: A Growing Challenge

Australian data shows psychological injury claims are increasing and typically involve longer durations away from work.

However, Safe Work Australia and icare emphasise that early, supportive employer responses significantly improve RTW outcomes for psychological injuries.

Key success factors include:

  • Compassionate, non?judgmental communication
  • Clear role expectations without pressure
  • Modified duties that reduce exposure to stressors
  • Ongoing monitoring and flexibility

How ABILITY GROUP Helps

At ABILITY GROUP, we work with businesses across Australia to:

  • Develop compliant and practical RTW Programs
  • Support early intervention and injury management
  • Identify suitable duties aligned to medical capacity
  • Coordinate rehabilitation providers and stakeholders
  • Reduce claim duration, costs and premium impacts

Our approach focuses on safe, sustainable outcomes, protecting people while supporting business performance.

Need Help?

Return to work is not just a compliance obligation, it is one of the most powerful recovery tools available. Employers who actively support injured workers through structured, evidence?based RTW processes achieve better outcomes for their people and their business.

If you need support with return to work planning, compliance or complex claims, contact our injury management specialists who are here to help you.

References

Understanding Test and Tag

Understanding Test and Tag

by | Mar 2, 2026 | Work Health & Safety

Electrical safety is a critical part of workplace compliance under the NSW Work Health and Safety (WHS) laws. One of the most common questions businesses and individuals ask is whether office and home electrical items need to be “test & tag” every year. With the 2026 WHS refresher, it’s important to clarify the rules: not all equipment requires annual testing, and the frequency depends on the environment in which the equipment is used.

For employers, understanding these requirements is essential to avoid penalties and ensure a safe workplace. For households, the rules are different, as WHS obligations generally apply to workplaces rather than private homes. This article explains the latest NSW guidelines, the difference between office, high-risk, and home environments, and what ABILITY GROUP recommends for compliance and safety.

What Is “Test & Tag”?

  • Definition: Inspection and testing of electrical equipment by a competent person, followed by tagging to confirm compliance.
  • Purpose: Prevent electrical faults, reduce risk of shock, and ensure compliance with AS/NZS 3760:2022 standards

NSW WHS Requirements (2026 Update)

  • Workplaces (PCBU obligations): Employers must ensure electrical equipment is regularly inspected and tested if it is:
    • Plug in equipment, and
    • Used in environments where damage is likely (e.g., construction sites, workshops, outdoor areas).
  • Office Environments:
    • Low-risk settings (e.g., standard offices) do not require annual testing.
    • Typical interval: every 5 years for computers, printers, and other office equipment.
  • High Risk Environments:
    • Construction sites: every 3 months.
    • Factories, workshops, kitchens: every 12 months.
  • Home Use:
  • WHS laws apply to workplaces, not private homes.
  • Homeowners may voluntarily test appliances for safety, but it is not legally required

Test & Tag Frequency Overview

  • Constructions sites - Every 3 months
  • Workshops/factories - Every 12 months
  • Office settings - Every 5 years
  • Homes - Not required

Why Compliance Matters

  • Safety: Electrical faults cause ~30 serious incidents annually in NSW workplaces.
  • Legal: Non-compliance can result in fines under NSW WHS laws.
  • Reputation: Demonstrates commitment to employee safety and risk management

ABILITY GROUP Recommendation

  • Audit your workplace equipment to determine risk level.
  • Engage a licensed test & tag provider to ensure compliance with AS/NZS 3760:2022.
  • Document all inspections for WHS records and insurance purposes.
  • Educate staff on safe use of electrical equipment and reporting damaged items.

Key Takeaway

Office equipment in NSW does not need annual test & tag, but high risk workplaces do. Homes are exempt. For businesses, compliance is about tailoring inspection frequency to the environment, not applying a blanket “every year” rule.

To know more and better assist you contact us

 

Source: Safework NSW

Title: Electrical inspection and testing | SafeWork NSW

Read time: 5 mins