Frequently Asked Questions on workers compensation reform
Frequently Asked Questions on workers compensation reform
The Personal Injury Commission has produced a series of frequently asked questions to assist practitioners and other tribunal users to understand some of the recent changes to workers compensation legislation.
This follows a webinar for legal practitioners which was hosted by the Commission in July and attended by over 500 people.
The frequently asked questions should be read in conjunction with the Commission’s fact sheet on workers compensation reform which is available on the fact sheets and videos page on the Commission’s website.
The Commission would like to remind all tribunal users that it cannot provide advice on legal interpretation of the amendments or the application of the amendments to a particular case. Parties and/or their legal representatives should consult the relevant legislative provisions for the application of the amendments to the particular claim, and are encouraged to consider the guidance material provided by:
- Personal Injury Commission: Understanding personal injury disputes under the new workers compensation legislation
- SIRA: Changes to workers compensation in NSW
- IRO: Injured at work
- icare: Workers compensation reform
- IRC: Workplace conduct proceedings
As such, answers to questions seeking interpretation of the legislation cannot be included. However, the Commission remains committed to support tribunal users with procedural information where appropriate.
General
How do the changes impact my matter at the Personal Injury Commission?
For proceedings commenced prior to, or on or after 1 July 2026, parties and/or their legal representatives will need to consult the relevant transitional provisions as this will dictate the application of the reform to an injury or claim.
Psychological injury provisions
What happens if my matter involves ‘relevant conduct’?
The Industrial Relations Commission (IRC) has jurisdiction to determine whether the conduct the subject of a claim is ‘relevant conduct’. A determination by the IRC about whether conduct is ‘relevant conduct’ is binding.
Parties may be able to lodge an application with the Personal Injury Commission for other disputes resulting from a psychological injury caused by ‘relevant conduct’. However, if the dispute requires a determination about whether ‘relevant conduct’ occurred, an application should not be lodged with the Personal Injury Commission until the IRC has made a determination on whether ‘relevant conduct’ has occurred.
When lodging an application with the Personal Injury Commission, parties will be asked to advise if the claim involves a dispute about ‘relevant conduct’ and if so, to provide a copy of the IRC’s determination, or submissions as to why the Commission has standing to hear the matter or any objections. These requirements have been incorporated in the Personal Injury Commission’s updated forms (including Form 2 – Application to Resolve a Dispute and Form 2A – Reply to Application to Resolve a Dispute).
Permanent impairment assessments
Do the changes impact a worker who has had their degree of permanent impairment assessed prior to 1 July 2026?
The amendments have made changes to the assessment of permanent impairment for all injured workers, excluding exempt workers (police officers, paramedics and firefighters), coal miners, volunteers, claims for dust diseases, or claims with a pre-2002 date of injury.
Therefore, some injured workers who have had their permanent impairment assessed prior to 1 July 2026 may be impacted by the amendments.
The amendments introduce the concept of ‘pre-reform assessments’ becoming a worker’s ‘principal assessment’. A ‘pre-reform assessment’ is an assessment of permanent impairment undertaken before 1 July 2026 which has been relied upon by a worker and insurer to determine an entitlement to weekly compensation, lump sum compensation, work injury damages and includes an agreement (such as a complying agreement) or a Medical Assessment Certificate.
The Personal Injury Commission has updated its Form 2 - Application to Resolve a Dispute to capture whether a worker had a permanent impairment assessment or an agreement about permanent impairment prior to 1 July 2026 (that is, a ‘pre-reform assessment’).
Can I lodge a dispute with the Personal Injury Commission in respect of a ‘pre-reform impairment assessment’?
Where there is a dispute between a worker and insurer in respect of a permanent impairment assessment, including a ‘pre-reform impairment assessment’, this may be referred to the Personal Injury Commission for determination.
If a worker did not have their degree of permanent impairment assessed prior to 1 July 2026, how will it be assessed now?
For workers to whom the amendments apply, it will be assessed under the provisions relevant to ‘interim period assessments’ in the amending legislation and regulations.
Where there is a dispute between a worker and insurer in respect of a permanent impairment assessment, this may be referred to the Personal Injury Commission for determination.
Can I lodge a dispute with the Personal Injury Commission in respect of an ‘interim period assessment’?
If parties are unable to agree on the worker’s degree of permanent impairment following an ‘interim period assessment’, either party may elect to apply to the Personal Injury Commission to have the matter determined as a medical dispute. The party electing to bring the dispute to the Personal Injury Commission must present medical evidence supporting their decision.
Is an injured worker able to have a further permanent impairment assessment?
For workers to whom the amendments apply, they may be entitled to a further assessment of permanent impairment if the worker and insurer agree that there has been an ‘unexpected and material deterioration’ in the worker’s condition of at least a further 10 percentage points.
A dispute between a worker and insurer in respect of a permanent impairment assessment, including about whether there has been an ‘unexpected and material deterioration’, may be referred to the Personal Injury Commission for determination.