NSW Workers Compensation Reforms 2026: What Injury Managers Need to Know

For injury management professionals, legislative change rarely happens in isolation.

A change to workers compensation legislation does not just mean updating a policy document or reading a new set of guidelines. It impacts the day-to-day reality of managing claims:

• How information is captured. 
• How decisions are documented. 
• How workers are supported. 
• How teams communicate. 
• How organisations maintain confidence that they are meeting their obligations. 

The NSW Workers Compensation reforms introduced in 2026 represent the most significant changes to the scheme in more than a decade. While the reforms introduce new requirements across the system, one of the biggest areas of change is the management of psychological injury claims.

For injury managers, understanding what has changed is only the first step.

Then, understanding how these changes affect the way claims are managed every day.

Understanding the biggest change: psychological injury claims

One of the most significant changes introduced through the reforms relates to primary psychological injury claims.

Under the updated framework, compensation for a primary psychological injury must be connected to a Relevant Event or series of Relevant Events.

Relevant Events are broadly categorised into:

• Traumatic Relevant Events 
• Relevant Conduct 

These changes introduce a clearer framework for assessing psychological injury claims and create additional considerations for injury management teams when gathering information and supporting claims.

This reinforces the importance of early and accurate claim information.

The quality of information captured at the beginning of a claim can influence:

• claim assessment 
• communication with stakeholders 
• return to work planning 
• ongoing claim management decisions 

What does this mean in practice?

While every claim is different, injury managers should consider whether their existing processes support:

Clear incident documentation

Psychological injury claims can involve complex circumstances.

Capturing accurate information early helps create a clearer understanding of:

• what occurred 
• when it occurred 
• who was involved 
• what support may be required 

Strong documentation supports better conversations between workers, employers, insurers and treatment providers.

Consistent claim information

Legislative reform often creates additional data requirements.

The 2026 changes introduced updates relating to:

• claim forms 
• reporting requirements 
• classification codes 
• system fields 

Consistency matters for injury management teams.

A claim should not depend on individual knowledge or manual processes to ensure critical information is recorded correctly.

Maintaining a worker-centred approach

While compliance requirements are important, injury management remains fundamentally about supporting people through recovery.

Psychological injuries require careful communication, timely support and appropriate management throughout the recovery journey.

The reforms create new requirements, but the objective remains as helping workers recover and return to work safely.

Managing interim payments: reducing administrative complexity

Another practical change for injury managers relates to interim payments.

Where interim payments apply, teams may need to manage:

• payment calculations while liability is determined 
• adjustments following claim acceptance 
• accurate recording of payment history 

For teams managing multiple claims, these processes can create additional administrative pressure.

The challenge is not only calculating the correct amount; it is ensuring calculations are consistent, traceable and easy to manage throughout the claim lifecycle.

This is where technology can play an important role as the purpose of technology is to reduce administrative burden, so injury managers can focus more time on supporting workers.

A common misconception: “The system needs a complete overhaul”

One misconception we have heard throughout the NSW reforms is that organisations would need to completely redesign their injury management processes.

In reality, many of the changes involve adapting existing workflows, updating information requirements and ensuring systems can support new obligations.

For self-insured organisations especially, much of the work has happened behind the scenes:

• updating codes 
• aligning reporting requirements 
• supporting new claim information 
• ensuring workflows continue operating effectively 

The most effective response to legislative change is rarely starting again.

It is understanding what has changed and making targeted improvements where they create the most value.

What should injury managers do now?

While organisations should seek legislative advice from SIRA and their relevant scheme contacts, injury managers can consider the following practical steps.

1. Review existing processes

Ask:

• How do we currently manage psychological injury claims? 
• Where do we capture relevant information? 
• Are there manual steps that create risk? 

2. Ensure teams understand the changes

Technology updates alone are not enough. Teams need confidence around:

• new terminology 
• updated workflows 
• documentation requirements 
• escalation pathways 

3. Review reporting and data quality

Accurate claim data supports:

• better decision making 
• stronger governance 
• improved reporting confidence 

Legislative changes are often an opportunity to review whether current data practices are working effectively.

4. Stay connected to updates

The NSW workers compensation environment continues to evolve.

SIRA remains the authoritative source for legislative guidance, while organisations should continue working closely with insurers, partners and technology providers to understand operational impacts.

How Solv supports injury management teams through change

Our focus at Solv during legislative change is to help injury management teams continue managing claims effectively while requirements evolve.

Updates introduced to support NSW reforms include:

Supporting interim payment calculations

Solv’s Compensation Calculator enhancements help customers manage interim payment calculations and subsequent back payments following claim acceptance.

This reduces reliance on manual calculations and supports greater consistency across claims.

Supporting updated claim requirements

Solv has been updated to support key NSW reform requirements, including:

• updated claim forms 
• TOOCS 3.2 
• updated icare notification requirements 
• new self-insurance fields and codes 

Building beyond compliance

Compliance is the starting point. The next opportunity is improving the claims experience.

Future Solv enhancements will continue focusing on helping teams manage Relevant Conduct claims more efficiently, including workflow improvements such as automation, notifications and task support.

The practical impact for injury management teams

Legislative reform creates pressure because injury management teams are expected to adapt while continuing to support workers every day.

The organisations that navigate change successfully are those that combine three things:

Clear understanding of requirements.

Strong operational processes.

Technology that supports people rather than adding complexity.

The NSW reforms are a reminder that effective injury management is creating the conditions where workers can recover, return and move forward with confidence.

Resources

For official guidance on NSW workers compensation reforms, visit:

• SIRA Workers Compensation Information Hub 
• Key Changes for Employers: Workers Compensation Legislative Reform 2026 
• Psychological Injury Guidance 
• Employer Excess Guidance 

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