On 1 July 2026, the most significant reforms to the New South Wales workers compensation system in more than a decade came into effect. Introduced through two Bills passed by the NSW Parliament, the reforms reshape how psychological injury claims are assessed and managed, while introducing new requirements for employers, insurers and claims administrators.

It’s important to understand what those changes mean in practice.

How do the reforms affect day-to-day claims management? What do injury management teams need to do differently? And how can organisations ensure they remain compliant while continuing to support workers through recovery?

This guide breaks down the key changes, explains what they mean for employers and injury management teams, and outlines practical steps organisations can take to prepare.

Disclaimer: This article is intended as general information only and should not be relied upon as legal advice. For guidance on applying the legislation to specific claims, organisations should refer to the NSW State Insurance Regulatory Authority (SIRA) or seek independent legal advice.

Why were the reforms introduced?

Psychological injuries are one of the fastest growing drivers of workers compensation costs across Australia. They are often more complex to assess, involve longer recovery periods and account for significantly higher claim costs than physical injuries. At the same time, employers have been seeking greater clarity around claim eligibility and consistency in decision making.

The NSW Government introduced these reforms with the aim of strengthening the sustainability of the workers compensation scheme while continuing to provide support for workers with legitimate psychological injuries. The reforms introduce clearer legislative definitions, revised compensation pathways and new administrative requirements designed to improve consistency across the scheme.

While much of the public discussion has focused on psychological injury claims, the reforms also introduce operational changes affecting claim forms, reporting requirements, payment calculations and insurer data submissions.

For employers, this means the impact extends beyond legal interpretation. Internal processes, claim administration and supporting technology all need to adapt.

The four changes to understand

Although the reforms cover multiple areas of the workers compensation scheme, four changes will have the greatest impact on employers and injury management teams.

1. A new framework for psychological injury claims

The most significant reform relates to primary psychological injuries.

Under the new legislation, compensation is only available where the psychological injury arises from one or more Relevant Events, as defined under the legislation. These Relevant Events fall into two categories:

• Traumatic Relevant Events 
• Relevant Conduct 

This represents a significant shift from previous approaches and changes how many psychological injury claims will be assessed and managed throughout their lifecycle.

For employers, this means documentation, incident reporting and early claim information become even more important. Ensuring accurate information is captured from the outset can help support appropriate claim management while reducing unnecessary delays later in the process.

Importantly, determining whether a claim meets the legislative definition of a Relevant Event is not a decision made by software. Organisations should continue to rely on SIRA guidance and their insurer or legal advisers when interpreting the legislation.

2. Interim payments introduce a new claims process

One of the most practical operational changes involves interim weekly compensation payments.

Under the reforms, some psychological injury claims may require interim payments while liability is being determined. This creates additional administrative steps for employers and claims teams, including:

• calculating interim entitlements 
• managing payment adjustments if liability is accepted 
• maintaining accurate payment records 
• ensuring correct reporting throughout the claim lifecycle 

While the legislative requirement focuses on payment obligations rather than technology, many organisations are reviewing their internal processes to reduce manual calculations and minimise the risk of administrative error.

For claims teams managing multiple cases simultaneously, even small workflow improvements can significantly reduce administrative effort.

3. New claim forms, reporting requirements and data changes

While psychological injury reforms represent the most visible change, the 2026 reforms also introduce a number of administrative updates that affect how claims information is captured, reported and managed.

For injury management teams, these changes reinforce an important reality:

Accurate claim data is no longer just an administrative requirement. It is critical to effective claim governance.

Updated Worker’s Injury Claim Form

A new Worker’s Injury Claim Form has been introduced as part of the reforms.

For organisations, this means ensuring injury management teams are using the most current documentation when managing new claims.

Where systems or workflows rely on generating claim forms, organisations should ensure their processes align with the latest requirements and that teams understand how to manage claims during transition periods.

The release of updated forms and guidance also highlights the importance of having flexible systems that can adapt as regulatory requirements evolve.

TOOCS 3.2 updates

The reforms also introduced updates to the Type of Occurrence Classification System (TOOCS).

TOOCS codes are used across workers compensation systems to classify injury and incident information consistently. Keeping this information accurate supports reporting obligations, analysis and broader scheme oversight.

For employers, this means:

• reviewing classification processes 
• ensuring teams understand updated coding requirements 
• checking that existing claims data is being captured correctly 

Data quality is often overlooked during legislative change, but it plays a critical role in ensuring organisations have reliable visibility of injury trends and claim performance.

Changes to self-insurance reporting fields

Self-insured organisations have additional changes to consider, including updates to existing data fields and codes.

These include updates relating to:

• liability status 
• disputes 
• reopen codes 
• work capacity decisions 
• weekly payment classifications 
• payment-related codes 

For many self-insured customers, the biggest misconception has been that these changes would require a completely new claims management process.

In reality, much of the change has involved updating existing fields and workflows to align with the new requirements.

The complexity has largely been behind the scenes, ensuring systems are ready to support updated regulatory expectations while minimising disruption for users.

4. What do the NSW reforms mean for employers and injury management teams?

Legislative change can create uncertainty.

The natural reaction for many organisations is to ask:

“What do we need to change immediately?”

While every organisation’s obligations will depend on their scheme arrangements, claims environment and internal processes, there are several practical steps employers can take.

Review your psychological injury processes

The introduction of Relevant Events means organisations should review how psychological injuries are:

• reported 
• documented 
• assessed 
• escalated 
• managed throughout recovery 

Strong documentation has always been important. The reforms reinforce the need for clear, timely and accurate information.

Ensure teams understand the changes

Technology can support compliance, but it cannot replace understanding.

Injury managers, return to work coordinators and claims teams should understand:

• what has changed 
• what information needs to be captured 
• when escalation may be required 
• where to seek legislative guidance 

SIRA remains the appropriate source for interpreting legislative requirements and applying them to individual claims.

Review your claims technology

Legislative changes often expose weaknesses in existing processes.

Organisations should consider:

• Can your system adapt quickly when requirements change? 
• Are teams relying on manual calculations? 
• Is important claim information captured consistently? 
• Can you easily report on changing claim requirements? 

The goal should not simply be compliance.

The goal should be confidence that your systems and processes can adapt as the environment changes.

5. What we know today and what is still evolving

One of the challenges with major legislative reform is that implementation does not always happen as one single event.

Guidance continues to evolve as regulators, insurers, employers and technology providers work through practical application.

Confirmed changes include:

✓ Psychological injury reforms commenced from 1 July 2026.

✓ Relevant Events and Relevant Conduct pathways introduced.

✓ Updated claim forms released.

✓ TOOCS 3.2 requirements implemented.

✓ Changes to claim codes and reporting fields introduced.

✓ Interim payment processes updated.

Areas where organisations should continue monitoring guidance:

• Further SIRA clarification. 
• Future reporting requirements. 
• Additional workflow expectations. 
• Scheme updates impacting claims administration. 

This is why ongoing communication between employers, insurers, regulators and technology providers is essential.

No organisation benefits when compliance becomes a last-minute exercise.

6. How Solv supports organisations through regulatory change

When legislation changes, the first question many customers ask is:

“Is our system compliant?”

The answer is important, but the bigger question is:

“Can our system help us adapt as requirements continue to evolve?”

At Solv, our approach has been focused on supporting customers through the transition while ensuring changes are implemented responsibly and accurately.

The NSW reform updates have included:

Supporting interim payment calculations

The Solv Compensation Calculator has been enhanced to support interim payment calculations and assist customers managing payment adjustments throughout the claims lifecycle.

This helps reduce reliance on manual calculations and provides greater consistency when managing complex payment scenarios.

Supporting updated claim requirements

Solv has been updated to support:

• the new NSW Worker’s Injury Claim Form 
• TOOCS 3.2 updates 
• updated icare notification requirements 
• new self-insurance codes and fields 

These changes allow organisations to continue managing claims within existing workflows while adapting to new requirements.

Continuing to evolve based on customer feedback

One of the biggest lessons from this reform period has been the importance of collaboration.

The most effective solutions are not created in isolation.

Throughout the reform process, customer feedback has helped identify where additional improvements could make claims management easier.

Future releases will continue focusing on enhancements that support injury management teams, including workflow improvements such as additional automation, notifications and task support.

7. Workers compensation reform is ongoing

The July 2026 changes represent a significant milestone, but they are not the end of the conversation.

Further changes are expected, including updates relating to medical and related treatment expenses.

From 1 October 2026, compensable medical and related treatment expenses under the scheme must meet the requirement of being “reasonable and necessary”, replacing the previous “reasonably necessary” wording.

For organisations, this reinforces the importance of staying informed and maintaining flexible processes.

The organisations best positioned to manage legislative change are not necessarily those with the most complex systems.

They are the ones with clear processes, reliable data and the ability to adapt.

Frequently asked questions

Are the NSW workers compensation reforms mandatory?

Yes. The reforms passed by the NSW Parliament commenced from 1 July 2026 and apply to relevant workers compensation claims managed under the NSW scheme.

Are psychological injury claims changing?

Yes. The reforms introduce new requirements for primary psychological injury claims, including the requirement that compensation must relate to a Relevant Event or series of Relevant Events.

Is Solv compliant with the NSW workers compensation reforms?

Solv has implemented updates aligned with the requirements communicated by SIRA, including changes relating to claim forms, reporting requirements, compensation calculations and relevant system fields.

Organisations should continue referring legislative interpretation questions to SIRA or their relevant scheme contacts.

Do employers need to change their entire injury management process?

Not necessarily.

While the reforms introduce important changes, many organisations will be able to adapt through targeted updates to processes, training and systems rather than completely redesigning their approach.

Where can employers find official NSW workers compensation guidance?

The State Insurance Regulatory Authority (SIRA) remains the authoritative source for NSW workers compensation guidance and legislative information.

Legislative change is unavoidable in workers compensation

The organisations that manage change successfully are not those that simply react when requirements change. They are those that build adaptable processes, maintain accurate information and support their people through every stage of recovery.

The 2026 NSW reforms are a reminder that injury management is not just about compliance.

It is about creating systems that help people recover while giving organisations the confidence that they are managing their obligations effectively.

NSW Workers Compensation Reform Resources

The NSW workers compensation reforms represent a significant change for employers, insurers, self-insurers and injury management teams.

As requirements continue to evolve, organisations should rely on official guidance from the State Insurance Regulatory Authority (SIRA) for legislative interpretation and claim management obligations.

Below are key resources to help employers and injury management professionals understand the changes.

SIRA resources

NSW Workers Compensation Information Hub

SIRA’s Workers Compensation Information Hub provides the latest guidance, updates and resources relating to the NSW workers compensation scheme.

NSW Workers Compensation Information Hub

Key changes for employers: Workers Compensation Legislative Reform 2026

This resource outlines the key legislative changes introduced through the 2026 reforms, including changes relating to psychological injury claims and scheme requirements.

Key changes for employers: Workers Compensation Legislative Reform 2026

Psychological injury guidance

SIRA provides guidance for workers and employers on psychological injury claims, including information about how psychological injuries are managed within the NSW workers compensation system.

Psychological injury guidance for workers and employers

Employer excess guidance

The reforms also introduced changes relating to employer excess calculations. Employers can refer to SIRA’s guidance for further information on how excess is applied under the updated scheme.

Employer excess guidance

Solv resources

Solv customers can access ongoing product updates and guidance through the Solv Help Centre, including information on enhancements supporting NSW legislative changes.

Compensation Calculator NSW Interim Payments

This guide explains how Solv customers can use Compensation Calculator enhancements to support interim payment calculations and manage back payments following claim acceptance.

Solv Help Centre: Compensation Calculator NSW Interim Payments