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 workplace stress injury claim, the diagnosis is only the starting point. The records should connect a clinical diagnosis and records of symptom onset and a dated chronology supported by emails, rosters, complaints or incident material with the worker's practical limits, including hours, workload, interaction, concentration, reliability and tolerance of the same workplace setting and whether proposed duties remove the relevant stressor. If the insurer disputes whether stress amounts to a diagnosed psychological injury, the response should address that reason directly.
Assessment 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
Workplace stress injury is not a single impairment category. The accepted diagnosis must identify the structure or body system affected and the permanent consequence being assessed.
- A supported work mechanism: unsafe workload, repeated conflict, traumatic exposure or another documented work stressor.
- A supported work mechanism: a management process where the insurer may rely on section 11A.
- For workplace stress injury, separate diagnoses and consequential conditions should be recorded individually so that one broad injury label is not used for different assessment methods.
Symptoms and findings that matter
A finding relevant to workplace stress injury: a clinical diagnosis and records of symptom onset.
A finding relevant to workplace stress injury: a dated chronology supported by emails, rosters, complaints or incident material.
A finding relevant to workplace stress injury: psychiatric or psychological opinion on work contribution and capacity.
Hours, workload, interaction, concentration, reliability and tolerance of the same workplace setting.
What investigations are usually relevant
Investigations for workplace stress injury may include a clinical diagnosis and records of symptom onset and a dated chronology supported by emails, rosters, complaints or incident material. Each result should answer a defined clinical question and be read with the examination, diagnosis and history.
- Psychiatric or psychological opinion on work contribution and capacity.
- The insurer decision identifying the precise legal and factual dispute.
How WPI is assessed for this body part
Stress alone is not a WPI diagnosis.
Primary psychiatric impairment uses the NSW method after the condition stabilises.
Secondary psychological symptoms are not separately assessed or combined with physical WPI.
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.
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
- Workplace stress injury is not a single impairment category. The accepted diagnosis must identify the structure or body system affected and the permanent consequence being assessed. A finding relevant to workplace stress injury: a clinical diagnosis and records of symptom onset.
- Method to apply
- Stress alone is not a WPI diagnosis.
- Why no percentage can be assumed
- 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.
What usually does not increase WPI
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.
The existence of a dispute about whether stress amounts to a diagnosed psychological injury does not replace the measurements and criteria required by the controlling impairment method.
The existence of a dispute about whether employment was the main contributing factor does not replace the measurements and criteria required by the controlling impairment method.
Treatment, time away from work and an imaging or diagnosis label do not by themselves establish the WPI result for workplace stress injury.
Evidence checklist
The records for workplace stress injury should include care directed to the diagnosed condition rather than the broad word stress. They are most useful when the diagnosis, examination and practical restrictions are consistent.
How this injury commonly happens at work
Work-related workplace stress injury can arise through unsafe workload, repeated conflict, traumatic exposure or another documented work stressor and a management process where the insurer may rely on section 11A. The chronology should identify the actual task or event and when symptoms or function changed.
Work-related workplace stress injury can arise through a physical injury claim followed by stress symptoms requiring primary-versus-secondary analysis. The chronology should record the actual task or event and the point at which symptoms or function changed.
Common insurer disputes
For workplace stress injury, an insurer may dispute whether stress amounts to a diagnosed psychological injury and whether employment was the main contributing factor. The written decision should be answered with evidence directed to those reasons.
Further disputes about workplace stress injury may concern whether reasonable management action or non-work events are relied on, 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. The decision notice should identify which issue is relied on and the evidence said to support it.
Treatment and surgery issues
Depending on the diagnosis and treating opinion, management of workplace stress injury may involve safe work planning addressing workload, contact and identified triggers. The request should explain the expected functional benefit and its connection to the accepted injury.
Weekly payments and work capacity
Capacity evidence for workplace stress injury should address whether proposed duties remove the relevant stressor and whether attendance can be sustained across the roster. Proposed duties must be sustainable for the proposed hours, not merely possible once.
How NSW Work Injury Claim can help
For workplace stress injury, a claim review can help to identify the diagnosis and disputed work events and organise a concise evidence chronology. The purpose is to identify the precise decision and the evidence needed for the next available step, not to promise an outcome.
For workplace stress injury, a claim review can help to check the insurer reasoning before responding on section 11A, capacity or WPI 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 workplace stress injury claims
How can work cause or aggravate workplace stress injury?
For workplace stress injury, the relevant work history may include unsafe workload, repeated conflict, traumatic exposure or another documented work stressor, a management process where the insurer may rely on section 11A, and a physical injury claim followed by stress symptoms requiring primary-versus-secondary analysis. 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 workplace stress injury?
For workplace stress injury, stress alone is not a WPI diagnosis. A finding relevant to workplace stress injury: a clinical diagnosis and records of symptom onset. 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 workplace stress injury assessment?
A workplace stress injury assessment commonly needs a clinical diagnosis and records of symptom onset, a dated chronology supported by emails, rosters, complaints or incident material, psychiatric or psychological opinion on work contribution and capacity, and the insurer decision identifying the precise legal and factual dispute. 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 workplace stress injury?
For workplace stress injury, common issues include whether stress amounts to a diagnosed psychological injury, whether employment was the main contributing factor, and whether reasonable management action or non-work events are relied on. 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 workplace stress injury affect weekly payments and suitable duties?
Capacity evidence for workplace stress injury may need to address hours, workload, interaction, concentration, reliability and tolerance of the same workplace setting, whether proposed duties remove the relevant stressor, and whether attendance can be sustained across the roster. 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 workplace stress injury be assessed as permanent psychological impairment?
For workplace stress injury, stress alone is not a WPI diagnosis. 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.
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
- Psychological injury claims
- PTSD work injury
- Adjustment disorder at work
- Workers compensation claims
- Weekly payments
- Claim denied
- Work capacity decisions
- IME guide
- WPI assessment guide