A psychological injury claim is a workers compensation claim for a mental health condition, such as anxiety, depression or post-traumatic stress disorder (PTSD), where work was a significant contributing factor. Each state and territory runs its own scheme, and Comcare runs the federal one. Mental health conditions made up 12.0% of serious workers compensation claims in Australia in 2023-24, or 17,600 claims, according to Safe Work Australia.
What counts as a psychological injury at work?
Safe Work Australia says a worker may be able to claim workers compensation for a psychological injury when two things are true. The worker meets their scheme's definition of a worker or deemed worker, and work is a significant contributing factor to the injury. In some circumstances an injury that came in response to a reasonable decision or action by the employer is not covered.
The causes at work are called psychosocial hazards. Safe Work Australia lists these as common ones:
- job demands, low job control and poor support
- lack of role clarity and poor organisational change management
- inadequate reward and recognition, and poor organisational justice
- traumatic events or material
- remote or isolated work, and a poor physical environment
- violence and aggression
- bullying
- harassment, including sexual and gender-based harassment
- conflict or poor workplace relationships and interactions
"Stress itself is not an injury," Safe Work Australia says. Harm comes when stress is frequent, long-lasting or severe. Under the model work health and safety laws, a business must eliminate psychosocial risks, or minimise them so far as is reasonably practicable.
How common are psychological injury claims?
Safe Work Australia's Key Work Health and Safety Statistics Australia 2025, released on 16 October 2025, counts serious claims, meaning claims with at least one working week off. Its 2023-24 figures are preliminary and may be revised as claims are finalised.
- There were 17,600 serious claims for mental health conditions in 2023-24, 12.0% of all 146,700 serious claims.
- That was up 2,300 claims, or 14.7%, in one year.
- Over the 10 years to 2023-24 they rose by 10,900, or 161.1%, the largest change of any type of injury or disease.
- Mental health conditions account for 17.2% of women's work-related injury or illness and 8.2% of men's.
How much do psychological injury claims pay out?
The median compensation paid on a serious mental health claim was $67,400 in 2022-23, more than four times the median across all serious claims of $16,300. The median time off work was 35.7 working weeks, almost five times the 7.4 weeks across all serious claims.
A median is the middle claim when every claim is lined up from smallest to largest. Half were paid less and half were paid more.
What an individual claim pays depends on the state scheme and its entitlements. In NSW those include weekly payments, medical expenses, lump sum compensation and work injury damages. A NSW worker with a psychological injury needs a whole person impairment of at least 15% to claim a lump sum.
Flat White's 8 September 2026 edition, drawing on Safe Work Australia and Macquarie Research, covers what these claims cost the insurers.
Source: Safe Work Australia, Macquarie Research, August 2026
What changed for psychological injury claims in NSW in 2026?
NSW passed two workers compensation laws, the Workers Compensation Legislation Amendment Act 2025 in November 2025 and the Workers Compensation Legislation Amendment (Reform and Modernisation) Act 2026 in February 2026. According to the Personal Injury Commission, several changes started on 1 July 2026. The psychological injury changes apply to all NSW workers except coal miners, volunteers and exempt workers, a group that includes police officers, paramedics and firefighters.
A primary psychological injury notified from 1 July 2026 is only covered when it was caused by one or more "relevant events", with a real and direct connection to the job and employment the main contributing factor. The relevant events are:
- an act of violence or threat of violence
- indictable criminal conduct
- witnessing a traumatic incident, or a dead or seriously injured person at the scene of one
- vicarious trauma
- sexual harassment
- racial harassment
- bullying
- excessive work demands
- another event set by regulations
No compensation is payable where the significant cause was reasonable management action by the employer. A claim that rests on bullying, excessive work demands or racial or sexual harassment first goes to the Industrial Relations Commission, which decides whether that conduct happened.
The impairment level needed for weekly payments beyond 130 weeks, and for work injury damages, is rising in steps:
| Psychological injury notified or claimed from | Whole person impairment needed |
|---|---|
| 1 July 2026 | At least 25% |
| 1 July 2027 | More than 26% |
| 1 July 2029 | At least 28% |
Workers with at least 21% may get a further 52 weeks of weekly payments at a reduced rate. Medical and related treatment is limited to 12 months after weekly payments end, except for workers with the highest needs (over 30%). The 15% threshold for a lump sum stays the same.
Where do you lodge a psychological injury claim?
Safe Work Australia is not a workers compensation authority and cannot advise on claims. It points workers to the authority in their state or territory:
- ACT: WorkSafe ACT
- NSW: State Insurance Regulatory Authority (SIRA)
- Northern Territory: NT WorkSafe
- Queensland: Workplace Health and Safety Queensland
- South Australia: ReturnToWork SA
- Tasmania: WorkSafe Tasmania
- Victoria: WorkSafe Victoria
- Western Australia: WorkCover WA
- Commonwealth: Comcare
Time off for stress that is not part of a compensation claim comes out of your sick leave. Our guide to stress leave in Australia covers how that works. What counts as workplace bullying in Australia? covers the legal definition and how to apply for an order to stop it.
This is general information. Your state or territory authority can tell you how its scheme applies to your claim.
From Flat White: What are you trying to say?
Sources
Every page below was read on 8 October 2026.
- Safe Work Australia, Key Work Health and Safety Statistics Australia 2025, released 16 October 2025 (17,600 claims, 12.0%, 14.7%, 161.1%, $67,400 against $16,300, 35.7 weeks against 7.4, the 17.2% and 8.2% shares, what a serious claim is)
- Safe Work Australia, Psychosocial hazards (the list of hazards, stress is not an injury, the duty to eliminate or minimise)
- Safe Work Australia, Workers' compensation for psychological injuries (who can claim, the reasonable management action exclusion, the list of authorities)
- Personal Injury Commission (NSW), Workers compensation changes to commence 1 July 2026, 30 June 2026 (the two Acts, relevant events, the Industrial Relations Commission step, impairment thresholds, treatment limit, lump sum threshold)
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