Overview for NSW injured workers
Start with the dispute, not just the diagnosis
May be relevant when
Benefits to check
Legal help is useful when
Which psychological-injury rules apply?
Law reviewed 2026-07-21
The new primary psychological injury rules apply where the employer first received notification of the injury on or after 1 July 2026. A primary psychological injury notified before that date continues under the earlier provisions. The amendments also do not apply in the same way to secondary psychological injuries, exempt workers such as police officers, paramedics and firefighters, coal miners, volunteers or dust-disease claims. The notification history, worker category and transitional provisions must be checked before choosing a legal test.
New primary psychological injury
For a primary psychological injury within the post-1 July 2026 framework, the claimed condition must be a mental or psychiatric disorder causing behavioural, cognitive or psychological dysfunction. Compensation is only payable if one or more statutory relevant events caused the injury, there is a real and direct connection between those events and the employment, and employment is the main contributing factor.
Bullying, sexual harassment, racial harassment and excessive work demands are “relevant conduct”. A post-1 July 2026 primary psychological injury caused by relevant conduct uses a special claim process. A completed claim form and prescribed minimum information are required; the insurer has 42 days after receiving a completed claim to decide liability. Interim weekly payments and up to $7,500 for eligible outpatient treatment may be available during that determination period. Provisional liability does not apply to this special claim type. If liability remains disputed, the insurer review and the correct IRC or PIC pathway depend on the stated reason for the decision.
Section 11A and earlier claims
For a claim to which the amended section 11A applies, no compensation is payable if the psychological injury was predominantly caused by reasonable management action taken or proposed by the employer, the worker's expectation of reasonable management action, or the worker's perception of reasonable management action. The action must be taken in a reasonable way and be reasonable in all the circumstances. The amended provision applies to both primary and secondary psychological injury.
For an earlier psychological injury claim governed by the pre-reform section 11A, the question was whether the injury was wholly or predominantly caused by specified reasonable action taken or proposed by or on behalf of the employer concerning matters such as transfer, demotion, promotion, performance appraisal, discipline, retrenchment, dismissal or employment benefits. The action and the way it was taken also had to be reasonable.
How this affects your claim in practice
In a psychological injury claim, the diagnosis is only the starting point. The records should connect GP, psychologist, psychiatrist and certificate of capacity records and workplace chronology with dates, people involved and documents with the worker's practical limits, including fitness for the same workplace, contact with particular people, workload, hours and triggers and whether suitable duties are psychologically safe and medically supported. If the insurer disputes whether work was the main contributing factor, the response should address that reason directly.
Related claim pathways
Other claims that may need to be considered
A work injury claim is often the first issue, but some facts can raise a separate insurance or injury pathway. These links are included only where the overlap may genuinely matter.
Long-term inability to return to work
If you are unlikely to return to suitable work long-term, you may also need to check whether TPD insurance through superannuation is available. TPD is separate from workers compensation.
My TPD ClaimsAssessment source
- NSW Guidelines paras 1.21-1.22: only primary psychological injury is assessable for permanent impairment; secondary psychological injury, such as depression associated with a physical back injury, is not assessed as permanent impairment.
- NSW Guidelines psychological injury chapter replaces AMA5 Chapter 14 for NSW workers compensation assessments.
- Workers Compensation Act 1987 (NSW) s 65A: primary psychological injury requires at least 15% WPI for permanent impairment compensation; secondary psychological injury is excluded.
- Workers Compensation Legislation Amendment Act 2025 No 72 (NSW), Schedule 1.8: new primary psychological injury gateway and amended s 11A for claims within the post-1 July 2026 framework.
Psychological conditions and claim classifications
Psychological injury should identify whether the claim is primary psychological injury, secondary psychological symptoms after physical injury, or a disputed management-action/relevant-conduct pathway.
- Common diagnoses can include adjustment disorder, PTSD, anxiety, depression, panic symptoms or stress-related conditions, but the legal pathway depends on causation and the insurer notice.
- The new primary psychological injury rules apply where the employer first received notification of the injury on or after 1 July 2026. A primary psychological injury notified before that date continues under the earlier provisions. The amendments also do not apply in the same way to secondary psychological injuries, exempt workers such as police officers, paramedics and firefighters, coal miners, volunteers or dust-disease claims. The notification history, worker category and transitional provisions must be checked before choosing a legal test.
Symptoms and findings that matter
Diagnosis, treatment history, functional effect and work-related cause are more important than broad descriptions of stress.
For a primary psychological injury within the post-1 July 2026 framework, the claimed condition must be a mental or psychiatric disorder causing behavioural, cognitive or psychological dysfunction. Compensation is only payable if one or more statutory relevant events caused the injury, there is a real and direct connection between those events and the employment, and employment is the main contributing factor.
For a claim to which the amended section 11A applies, no compensation is payable if the psychological injury was predominantly caused by reasonable management action taken or proposed by the employer, the worker's expectation of reasonable management action, or the worker's perception of reasonable management action. The action must be taken in a reasonable way and be reasonable in all the circumstances. The amended provision applies to both primary and secondary psychological injury.
For secondary psychological symptoms after a physical injury, NSW Guidelines state they are not assessed as permanent impairment.
What investigations are usually relevant
Investigations for psychological injury may include GP mental health notes, psychologist or psychiatrist reports and medication history and workplace chronology, incident records, emails, rosters, witness details and insurer decision notices. Each result should answer a defined clinical question and be read with the examination, diagnosis and history.
- Certificates of capacity showing psychological restrictions, attendance limits and suitable duties issues.
How WPI is assessed for this body part
Primary psychological injury is assessed under the NSW psychological injury chapter, not AMA5 Chapter 14.
The Psychiatric Impairment Rating Scale (PIRS) assesses six functional areas: self-care and personal hygiene; social and recreational activities; travel; social functioning and relationships; concentration, persistence and pace; and employability. The NSW method uses the median class and aggregate score to determine WPI.
Primary psychological impairment is assessed under the NSW psychiatric impairment method. Section 65A requires at least 15% WPI for permanent impairment compensation for a primary psychological injury. No permanent impairment compensation is payable for a secondary psychological injury, and secondary psychological symptoms are excluded from the physical or primary psychological impairment assessment. A diagnosis, treatment history or incapacity does not itself determine a PIRS class or WPI result.
Physical and primary psychological impairments are assessed separately and are not combined into one WPI figure under NSW Guidelines para 1.21.
Table and value examples
Secondary psychological injury after physical injury
No WPI assessment for the secondary psychological injuryThis does not mean symptoms are irrelevant to weekly payments or treatment. It means the secondary psychological condition is not separately assessed as WPI.
Source: NSW Guidelines para 1.22
Primary psychological injury permanent impairment threshold
At least 15% WPIThis is the statutory threshold for permanent impairment compensation. It is not a predicted rating and does not replace a valid PIRS assessment after the condition has stabilised.
Source: Workers Compensation Act 1987 (NSW) s 65A(3)
Method illustration
This is a non-numeric illustration of the assessment sequence. It does not predict a WPI result.
- Accepted condition and findings
- Psychological injury should identify whether the claim is primary psychological injury, secondary psychological symptoms after physical injury, or a disputed management-action/relevant-conduct pathway. Diagnosis, treatment history, functional effect and work-related cause are more important than broad descriptions of stress.
- Method to apply
- Primary psychological injury is assessed under the NSW psychological injury chapter, not AMA5 Chapter 14.
- Why no percentage can be assumed
- Stress, frustration or low mood after a physical injury does not create a separate psychological WPI rating if it is secondary psychological injury.
What usually does not increase WPI
Stress, frustration or low mood after a physical injury does not create a separate psychological WPI rating if it is secondary psychological injury.
A diagnosis label alone is not enough; causation, stability and function must be assessed.
Weekly payment impact and permanent impairment assessment are different questions.
Evidence checklist
The records for psychological injury should include psychological diagnosis and treatment records from GP, psychologist or psychiatrist and chronology of workplace events, injury consequences and insurer decisions. They are most useful when the diagnosis, examination and practical restrictions are consistent.
- Certificates of capacity and rehabilitation notes showing attendance, concentration, confidence or interaction limits.
- The injury-notification date, worker category, alleged relevant event and exact insurer reasons, so the correct current or earlier legal framework can be identified.
How this injury commonly happens at work
Work-related psychological injury can arise through workplace violence or traumatic exposure and bullying, harassment or repeated conflict. The chronology should identify the actual task or event and when symptoms or function changed.
Work-related psychological injury can arise through disciplinary, performance or management action issues, excessive workload, unsafe systems or repeated exposure to distressing material, and a physical injury followed by recognised psychological symptoms. The chronology should record the actual task or event and the point at which symptoms or function changed.
Common insurer disputes
For psychological injury, an insurer may dispute whether work was the main contributing factor and whether reasonable action under section 11A is alleged. The written decision should be answered with evidence directed to those reasons.
Further disputes about psychological injury may concern whether diagnosis and incapacity are sufficiently explained, whether treatment is reasonably necessary, and whether non-work stressors are being overstated. The decision notice should identify which issue is relied on and the evidence said to support it.
The psychological injury file may also need to address for a post-1 July 2026 primary claim, whether a statutory relevant event caused the disorder, there is a real and direct connection with employment, and employment is the main contributing factor and where amended section 11A applies, whether the injury was predominantly caused by reasonable management action that was itself reasonable and taken in a reasonable way; earlier claims use a different test. A response is stronger when each issue is matched to dates, clinical findings, investigations and duties evidence.
Treatment and surgery issues
Depending on the diagnosis and treating opinion, management of psychological injury may involve GP management, psychology, psychiatry and medication review and trauma-informed or diagnosis-specific therapy where supported. The request should explain the expected functional benefit and its connection to the accepted injury.
Further management of psychological injury may involve workplace contact restrictions or graded recovery planning where medically appropriate and careful handling of requests for independent psychiatric examination. The request should explain why the proposed step is connected to the accepted injury and what functional improvement is expected.
Weekly payments and work capacity
Capacity evidence for psychological injury should address fitness for the same workplace, contact with particular people, workload, hours and triggers and whether suitable duties are psychologically safe and medically supported. Proposed duties must be sustainable for the proposed hours, not merely possible once.
For psychological injury, capacity evidence should address weekly payment decisions based on psychiatric capacity evidence and return-to-work planning that does not ignore treatment advice. The question is whether those activities can be performed safely, reliably and for the proposed hours—not whether a task can be attempted once.
How NSW Work Injury Claim can help
For psychological injury, a claim review can help to review the decision and any section 11A issue before responding and organise chronology, diagnosis and capacity evidence. The purpose is to identify the precise decision and the evidence needed for the next available step, not to promise an outcome.
For psychological injury, a claim review can help to separate treatment, weekly payments and dispute strategy, identify the documents and response points that should be checked before taking a step, and check whether bullying, sexual harassment, racial harassment or excessive work demands engage the completed-claim, insurer-review and IRC/PIC relevant-conduct process rather than assuming one dispute pathway. The purpose is to identify the precise decision and the evidence needed for the next available step, not to promise an outcome.
Common questions about psychological injury claims
How can work cause or aggravate psychological injury?
For psychological injury, the relevant work history may include workplace violence or traumatic exposure, bullying, harassment or repeated conflict, and disciplinary, performance or management action issues. A claim still depends on the actual chronology and medical evidence. The records should identify what changed, when symptoms began or worsened, and how the diagnosed condition affects the worker's duties.
How is WPI assessed for psychological injury?
For psychological injury, primary psychological injury is assessed under the NSW psychological injury chapter, not AMA5 Chapter 14. Diagnosis, treatment history, functional effect and work-related cause are more important than broad descriptions of stress. The assessor must apply the NSW Guidelines to the accepted, stable condition; the diagnosis or an operation does not by itself determine a percentage.
Which records are most useful for a psychological injury assessment?
A psychological injury assessment commonly needs psychological diagnosis and treatment records from GP, psychologist or psychiatrist, chronology of workplace events, injury consequences and insurer decisions, certificates of capacity and rehabilitation notes showing attendance, concentration, confidence or interaction limits, and the injury-notification date, worker category, alleged relevant event and exact insurer reasons, so the correct current or earlier legal framework can be identified. Those records are most useful when they describe the same diagnosis, examination findings, treatment history and practical work restrictions.
What does an insurer commonly dispute about psychological injury?
For psychological injury, common issues include whether work was the main contributing factor, whether reasonable action under section 11A is alleged, and whether diagnosis and incapacity are sufficiently explained. The response should address the insurer's stated reason with the relevant chronology, clinical findings, investigations and duties evidence rather than relying on the diagnosis alone.
How can psychological injury affect weekly payments and suitable duties?
Capacity evidence for psychological injury may need to address fitness for the same workplace, contact with particular people, workload, hours and triggers, whether suitable duties are psychologically safe and medically supported, and weekly payment decisions based on psychiatric capacity evidence. A certificate should describe what the worker can do safely and sustainably. Proposed duties should then be checked against those restrictions and the real demands of the job.
Can psychological injury be assessed as permanent psychological impairment?
For psychological injury, primary psychological injury is assessed under the NSW psychological injury chapter, not AMA5 Chapter 14. Primary and secondary psychological injury must not be treated as interchangeable. The accepted injury, current NSW law, medical stability and the prescribed assessment method all need to be checked before any WPI outcome is assumed.
Request a calm claim position review
If you have received an insurer decision or you are unsure how your injury evidence fits together, we can help you identify the issue, organise the documents and consider the next step. Where ILARS funding is approved, eligible legal costs and necessary disbursements may be covered.
Occupation guides relevant to this work
Related NSW workers compensation guides
- Primary vs secondary psychological injury
- Secondary psychological injury after physical injury
- Psychological symptoms and work capacity
- Section 11A psychological injury guide
- Psychological injury evidence
- PTSD work injury
- Adjustment disorder at work
- Workers compensation claims
- Weekly payments
- Claim denied
- Work capacity decisions
- IME guide
- WPI assessment guide