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

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