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.
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.
Significant NSW workers compensation scheme changes came into effect in 2025, reshaping how workplace injuries are managed for both employers and injured workers. These reforms aim to improve sustainability, encourage safer return-to-work outcomes, and clarify entitlements across the life of a claim. For businesses and workers alike, understanding what’s changed and what it means in practice is critical to navigating claims with confidence.
With holiday celebrations around the corner, it’s smart for businesses to take proactive steps to avoid turning a festive gathering into a workplace incident and potential legal headache. It’s important for businesses to take precautions before work Christmas parties, as while these events are meant to celebrate and boost morale, they can create legal, safety, and reputational risks. Here are actionable tips on Preventing Psychosocial Party Hangovers!
NSW has finally enacted significant NSW Workers Compensation Reforms, the most notable in over a decade, with the Workers Compensation Legislation Amendment Bill 2025, which received Royal Assent on 24 November 2025. These reforms introduce tighter definitions and objective tests for psychological injuries, including bullying, excessive work demands, racial and sexual harassment, and establish a clear framework distinguishing between primary and secondary psychological injuries. The reforms also streamline Whole Person Impairment (WPI) assessments to a single principal assessment by an approved medical expert, replacing dual assessments.
