Victoria Leads the Way in Modernising Mental Injury Claims – Could NSW Follow?

Victoria’s recent reforms to its workers’ compensation system, particularly in addressing mental injury claims, offer a blueprint for creating fairer, more efficient processes in New South Wales (NSW). By clarifying definitions, excluding claims based on reasonable workplace stressors, and streamlining the claims process, Victoria has taken significant steps to reduce disputes and focus on genuine cases of harm. If NSW were to adopt similar measures, it could transform its handling of mental injury claims—providing faster support for workers in need, reducing system misuse, and fostering healthier workplace cultures. Read on to discover how these reforms could pave the way for meaningful change in NSW.

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Modernising Mental Injury Claims: Lessons for NSW from Victoria’s Reforms


Victoria’s recent steps to modernise its workers’ compensation system, particularly regarding mental injury claims, offer a glimmer of hope for reform in New South Wales (NSW). These changes, as outlined in WorkSafe Victoria’s updated Practice Directive on Mental Injury Eligibility and the broader Scheme Modernisation Plan, aim to clarify definitions, streamline claims processes, and reduce unnecessary disputes. If NSW were to adopt similar reforms, it could alleviate many challenges currently faced by workers and employers alike.

Key Changes in Victoria’s Approach


Victoria’s reforms focus on two primary areas: eligibility criteria for mental injury claims and a broader modernisation of its workers’ compensation scheme. Notably:
  1. Clarity in Definitions: Mental injury claims now hinge on specific, clearly defined criteria. For instance, there must be evidence of repeated incidents to substantiate claims of bullying as opposed to the current requirement for there to be a single frank incident. This eliminates ambiguity and ensures claims are grounded in verifiable patterns of behaviour rather than isolated events.
  2. Exclusion of Reasonable Stress and Burnout: The reforms explicitly exclude claims arising from injuries due to reasonable stress, burnout, or normal workplace expectations. This distinction prevents misuse of the system while ensuring that legitimate claims are addressed.
  3. Streamlined Processes: The updated directive promotes faster claim processing, reducing the emotional and financial strain on all parties.
The Need for Reform in NSW


The NSW workers’ compensation system has faced criticism for its handling of mental injury claims. A significant issue lies in the broad and often subjective interpretation of “bullying” and “workplace stress.” Many claims arise from single incidents or reasonable disciplinary actions, leading to drawn-out disputes that benefit neither the worker nor the employer.
Victoria’s approach offers a model for addressing these issues:
  • Reducing Ambiguity: By requiring evidence of repeated incidents, NSW could prevent claims based on minor misunderstandings or isolated events. This would refocus the system on genuinely harmful behavior.
  • Excluding Normal Workplace Stressors: Clear exclusions for reasonable stress and burnout would protect the system from being overwhelmed by claims stemming from the inherent challenges of professional roles.
  • Encouraging Early Resolution: Streamlined processes, as seen in Victoria, would reduce delays and foster early intervention, potentially resolving issues before they escalate.
Hope for a Better System


Adopting a framework similar to Victoria’s in NSW could significantly reduce the volume of claims resulting from misunderstandings or routine workplace activities. It would also help workers who suffer genuine harm receive support more efficiently, while employers could focus on fostering healthier workplaces rather than navigating convoluted claims processes.
Reform in NSW could also address the root causes of bullying claims by encouraging workplaces to adopt preventative measures. The emphasis on repeated incidents, for instance, could prompt organizations to establish stronger anti-bullying policies and promote better workplace culture.
A Path Forward


Victoria’s reforms highlight the importance of clarity, fairness, and efficiency in addressing mental injury claims. If NSW follows suit, it could prevent many of the disputes that currently clog the system while providing better outcomes for those in need.

With the groundwork laid by Victoria, there is hope that NSW will recognise the benefits of a modernised approach. Such reform could mark a turning point in how mental injuries are addressed, fostering healthier, more supportive workplaces across the state.

What do you think? Should NSW adopt Victoria’s approach to modernising mental injury claims? Share your thoughts in the comments below!

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