Regulators are intensifying efforts to crack down on workers’ compensation fraud as part of a broader push to protect the integrity of schemes. Fraudulent claims not only divert resources away from genuinely injured workers, but also drive up insurance premiums for businesses and place unnecessary strain on insurers. In NSW, SIRA has intensified its crackdown on insurance fraud in Workers Compensation and CTP schemes, warning fraudsters that cheating will not be tolerated. ABILITY GROUP highlights the importance of this campaign for employers and workers alike.
SIRA’s Fraud Crackdown
In December 2025, SIRA announced a ramped-up campaign against fraud in Workers Compensation and CTP schemes. Since January 2024, it has secured 12 prosecutions, with more cases now before the courts or under investigation. These prosecutions include cases such as SIRA v Andrew Leslie, where fraudulent claims were pursued under the Crimes Act 1900 (NSW), demonstrating SIRA’s commitment to holding individuals accountable.
Why This Matters for Employers
ABILITY GROUP emphasises that fraudulent claims not only undermine the integrity of the compensation system but also divert resources away from genuinely injured workers. Fraudulent activity increases premiums, strains employer budgets, and erodes trust in workplace safety and workers compensation systems.
Employers must understand the role of (SIRA) Inspectors, who are tasked with ensuring compliance with workers compensation laws and return-to-work obligations. These inspectors are now more vigilant than ever, and businesses that fail to comply risk penalties, reputational damage, and financial loss.
Key Impacts of the Fraud Crackdown
- Deterrence – fraudsters face prosecution, fines, and potential imprisonment.
- Fairness – genuine claimants receive the support they deserve without delays caused by fraudulent claims.
- Financial Protection – employers benefit from reduced strain on insurance pools, helping stabilise premiums.
- Compliance Pressure – businesses must ensure accurate wage reporting and adherence to workers compensation obligations, as underinsurance and fraud are now top enforcement priorities.
ABILITY GROUP’s Perspective
As workers compensation specialists, ABILITY GROUP underscores the importance of zero tolerance for fraud. Fraudulent claims not only harm insurers but also damage workplace morale and undermine recovery efforts for employees who truly need support.
By aligning with SIRA’s enforcement campaign, ABILITY GROUP encourages employers to:
- Conduct regular audits of wage reporting and insurance coverage
- Educate staff about the consequences of fraudulent claims
- Cooperate fully with SIRA Inspectors during investigations
- Implement strong workplace safety and injury management programs to reduce risks
Need Help?
SIRA’s NSW crackdown is a reminder for NSW employers and employees, but it should also be a reminder for businesses operating in other states/territories. Fraudulent claims will be detected, prosecuted, and punished. For ABILITY GROUP, this latest anti-fraud campaign reinforces the need for integrity, compliance, and proactive workplace safety management. Employers who embrace these principles will not only avoid penalties but also contribute to a fairer, more sustainable compensation system.
Contact us for help with suspicious workers compensation claims.
Further Information
Source: SIRA
Title: SIRA cracks down on insurance fraud in the Workers Compensation and Compulsory Third Party Schemes
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