Workplace Manslaughter Victoria: Bakery Fined $3.4M

Workplace Manslaughter Victoria: Bakery Fined $3.4M

A recent prosecution by WorkSafe Victoria has delivered one of the strongest workplace safety messages Australian businesses have seen in recent years. A Victorian bakery has been fined a record $3.4 million under workplace manslaughter legislation following a fatal workplace incident.

This landmark case is more than just a headline; it reflects a significant shift in workplace health and safety (WHS) enforcement and demonstrates the growing expectations placed on employers, directors, and business leaders to actively protect their workers.

For businesses across Australia, particularly small and medium-sized enterprises (SMEs), the case serves as a powerful reminder that workplace safety must be a core business priority, not simply a compliance obligation.

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NSW’s WHS Codes of Practice are now Minimum Standards

NSW’s WHS Codes of Practice are now Minimum Standards

The commencement of Section 26A of the Work Health and Safety Act 2011 (NSW) on 1 July 2026 marks a significant shift in workplace safety compliance across New South Wales (NSW). Approved Codes of Practice no longer serve solely as guidance documents; they now establish the minimum WHS standards businesses must meet.

For Persons Conducting a Business or Undertaking (PCBUs), this change removes much of the uncertainty surrounding compliance expectations. Codes of Practice are no longer optional reference material. Instead, businesses must either comply with the relevant Code or demonstrate that their alternative approach provides an equivalent or higher level of health and safety protection.

As a result, compliance, enforcement, and workplace risk management have entered a new era.

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$789b Warning Sign for Employers

$789b Warning Sign for Employers

A recent news.com.au report has sounded a clear warning: Australia’s $789b income support system is under increasing strain, driven largely by a surge in mental health-related claims across workers’ compensation, disability, and welfare schemes.

While the headline focuses on government finances, employers should not mistake this as a public-sector problem. Psychological injury claims are now one of the fastest growing, longest lasting, and most expensive risks facing Australian workplaces, and businesses are increasingly bearing the cost through higher premiums, stricter eligibility thresholds, and regulatory scrutiny.

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Working Environment: A Practical Guide for Businesses

Working Environment: A Practical Guide for Businesses

Creating a safe and healthy working environment is not just good practice; it’s a legal and moral responsibility for Australian business owners and managers. Poor workplace facilities don’t just frustrate workers, they increase injuries, claims and SafeWork NSW action. SafeWork NSW’s Managing the Work Environment and Facilities Code of Practice sets clear expectations for NSW employers. Yet this area is still one of the most common compliance gaps uncovered during inspections, particularly for small and mid-sized businesses. With SafeWork NSW now operating as an independent regulator and inspector numbers increasing, workplaces that overlook basics like ventilation, amenities, lighting and housekeeping are facing heightened regulatory risk. So what does the Code mean in practice? Why does it matter in context of workers compensation?

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Workers’ Comp Crisis Highlights ABILITY GROUP’s Role

Workers’ Comp Crisis Highlights ABILITY GROUP’s Role

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