New South Wales has opened public consultation on a package of draft instruments intended to implement recent changes to the state’s workers’ compensation framework. From April 20, stakeholders can review and comment on the draft Workers' Compensation Legislation Amendment Regulation 2026, revised Workers' Compensation Guidelines, Market Practice and Premium Guidelines, and associated instruments and forms. The documents are intended to give effect to reforms enacted under the Workers' Compensation Legislation Amendment Act 2025 and the Workers' Compensation Legislation Amendment (Reform and Modernisation) Act 2026.
Feedback is being collected through the government’s Have Your Say platform, along with targeted consultation sessions with industry, employer groups, unions, and other stakeholders. Submissions will inform the final version of the regulation and guidance material that will support scheme operation. The consultation is linked to upcoming adjustments to pricing structures, claims management requirements, governance settings, and reporting obligations within the NSW scheme.
Several reform measures have already commenced following a proclamation setting an effective date of March 27, 2026, for selected provisions of the 2025 and 2026 Acts. One set of amendments to the Personal Injury Commission Act 2020 allows the Personal Injury Commission to appoint a tutor to represent and support a person under legal incapacity where commission proceedings directly or significantly affect that person. The term “person under legal incapacity” has the same meaning as in the Civil Procedure Act 2005. It includes a child under 18, an involuntary or forensic patient under the Mental Health Act 2007, a person subject to guardianship arrangements, and a person who is unable to receive or express their wishes because of disability.
Further changes to the Personal Injury Commission Act 2020 enable the President of the Commission to make orders restricting or prohibiting disclosure of certain decisions and related information. Such orders may cover elements of a decision itself, the names or other identifying details of parties and witnesses, and information contained in transcripts, documents filed with the commission, or related recordings. These powers give the commission additional options to manage confidentiality and the handling of sensitive information, which affects insurers, claimant representatives, and employer parties involved in disputes.
The proclamation also began amendments to the Workers' Compensation Act 1987 affecting the Nominal Insurer, operated by icare. Between June 30, 2026, and June 30, 2028, icare must not lodge premium filings with the State Insurance Regulatory Authority (SIRA) that would increase the scheme’s target premium collection rate above the 2025-26 target level. In effect, the aggregate target collection rate is fixed at that level for two years.
The measure does not cap premiums at the individual employer level. Employer premiums may still increase during the period because of higher declared wages, changes in business activity, or shifts in claims performance. At scheme level, the freeze sets a defined funding target for the period while retaining risk-based differentiation in employer premiums. Insurers, scheme agents, and brokers may review the impact of the freeze on pricing strategies, portfolio mix, and client communication.
Another reform beginning under the package establishes a review, led by the NSW Chief Psychiatrist, into the Psychiatric Impairment Rating Scale (PIRS). PIRS is used to assess the degree of permanent impairment from psychiatric injury for workers’ compensation purposes. The review will examine the “effectiveness and appropriateness” of PIRS as an assessment tool and will also consider potential alternative approaches. The final report must be tabled in Parliament within 18 months of assent of the Workers' Compensation Legislation Amendment (Reform and Modernisation) Act 2026. Any changes to psychiatric impairment assessment could affect benefit entitlements, claim reserving practices, dispute patterns, and medico-legal processes across the scheme.
The current consultation follows the passage of a broader reform package through the NSW Parliament in early February 2026. That legislation was positioned as a response to scheme funding pressures and stakeholder concerns about performance. The reform package includes:
Treasurer Daniel Mookhey said: “These reforms finally allow us to stabilise the workers' compensation system and return it to a secure footing. The scheme has been failing injured workers, employers, the non-profit sector, and taxpayers for too long. That has now come to an end. I want to acknowledge Business NSW and the state’s major business organisations, as well as NCOSS and charities and not-for-profits for their advocacy. I also thank the Labor caucus and the union movement for its engagement through many difficult but necessary conversations.”
Minister for Work Health and Safety Sophie Cotsis said: “These reforms ensure early support to injured workers, a road to recovery, and return to work. It puts the scheme on the path to sustainability so that it can continue to care for injured workers and be affordable for business to fund. The reforms will help small businesses and not-for-profits, especially in regional areas, retain staff and create jobs.” Minister for Customer Service and Digital Government Jihad Dib said: “These changes are about protecting the workers' compensation scheme for the long term, so it remains strong, fair and able to support the people who rely on it. Workers now have the certainty they need and the confidence to get on with their recovery and their working lives, knowing the system will be there when they need it.”
