Quick answer
What this means in practice
From 1 July 2026, psychological injury claims need especially careful classification. SIRA's reform FAQ describes staged thresholds for primary psychological injury claims, while section 11A and secondary psychological symptoms still need separate evidence analysis.
- Do not mix up primary psychological injury, secondary psychological symptoms and physical-injury consequences.
- SIRA's FAQ refers to staged primary psychological injury thresholds: at least 25%, then more than 26%, then more than 28% over time.
- Section 11A reasonable management action issues should be answered with facts and medical causation, not broad disagreement only.
- Psychological symptoms can also affect work capacity, return to work and treatment disputes even where the accepted injury is physical.
Why classification matters
A primary psychological injury is different from psychological symptoms that develop because of chronic pain, surgery, reduced mobility, financial pressure or a long physical-injury dispute. The classification can affect evidence, thresholds, provisional liability and strategy.
Workers should avoid assuming the label used by an employer, insurer or doctor answers the legal question. The claim file should identify the accepted injury, alleged events, medical diagnosis and connection between symptoms and work.
Primary psychological injury thresholds in the reform FAQ
SIRA's reform FAQ states that staged thresholds apply to claims for compensation for primary psychological injury, starting with at least 25% whole person impairment from 1 July 2026, then moving to more than 26% and more than 28% in later stages, subject to exempt worker categories.
This should not be read as a blanket rule for every mental health issue after a work injury. A worker with physical injury plus secondary psychological symptoms may need different advice.
Do not rely on older 21% or 31% summaries without checking the current SIRA source and your own claim dates.
Section 11A and provisional payment risk
If the insurer says the psychological condition was caused by reasonable management action, the worker usually needs evidence about what happened, whether the action was reasonable, and how the medical condition was caused. The useful response is specific and evidence-based.
A worker should preserve emails, meeting notes, performance material, rosters, workload records, complaint material and contemporaneous GP notes. The medical evidence should explain causation rather than only listing symptoms.
How psychological symptoms can affect work capacity
- Anxiety or depression may affect attendance reliability, pace, concentration and interaction with supervisors or customers.
- Pain-related distress may make proposed duties unrealistic even if a worker can perform some physical tasks briefly.
- Poor sleep, medication effects and fatigue can affect sustainable hours and safety.
- Fear of re-injury can be relevant to suitable duties if supported by treating evidence.
Official sources checked
This guide is based on SIRA and NSW Government sources available at the update date above. It is general information only and is not legal advice.
Frequently asked questions
Does the reform mean psychological injury claims cannot succeed?
No. It means classification, thresholds, exemptions, causation and evidence need to be checked carefully. A broad assumption either way can be dangerous.
Are secondary psychological symptoms treated the same as primary psychological injury?
Not necessarily. Secondary symptoms after a physical injury can raise different evidence and strategy issues. Get advice before assuming which category applies.
What evidence helps a psychological injury dispute?
Useful evidence can include GP notes, psychologist or psychiatrist reports, workplace records, contemporaneous complaints, capacity certificates, rehabilitation notes and statements that explain function and causation.
Need help applying this to a live claim?
If an insurer has issued a notice, scheduled an assessment, reduced payments, refused treatment, or raised the 2026 reforms in your claim, get the documents checked before the issue hardens.