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.
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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.
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Important Update: Changes to Late Payment Fee Waiver Process for Workers Compensation Policies. In line with recent regulatory updates, ABILITY GROUP is advising all employers and brokers of a significant change to the process for requesting late payment fee waivers and write-offs for Workers Compensation policies in NSW.
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The NSW Government has introduced significant NSW workers compensation reforms, aiming to modernise protections for employees while ensuring sustainability for businesses. We summarise NSW Government’s key workers compensation Protecting Workers Compensation for Future Generations changes and how they will directly impact employers, insurers, and workers across the state. and importantly highlight What It Means for Your Business.
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As summer approaches, it’s time to review and renew your policies. June marks a critical period for policyholders, and we’re here to ensure your coverage continues seamlessly, whether you’re renewing a business insurance plan, updating your health coverage, or reviewing your property protection.
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The NSW workers’ compensation scheme is facing significant financial challenges, with projections indicating it may only remain sustainable for another two years without substantial reforms. This situation has serious implications for employers, as potential changes could affect insurance premiums, claims processes, and overall compliance requirements.
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