While the Workers Compensation Legislation Amendment Bill was passed in late 2025, there is still another significant piece of reform before Parliament.

The Workers Compensation Legislation Amendment (Reform and Modernisation) Bill 2025 passed the Lower House in November and is now scheduled for its second reading in the Upper House tomorrow.

If passed in its current form, the Modernisation Bill will introduce further reforms to the NSW workers compensation scheme. Key proposed amendments include:

• Increases to the s38A (weekly payments) and s151H (work injury damages) thresholds:
• 25% WPI from 1 July 2026
• 27% WPI from 1 July 2027
• 28% WPI from 1 July 2029
• A review of psychiatric injury assessment:
• NSW’s Chief Psychiatrist will be required to deliver a report within 18 months proposing an alternative approach to assessing WPI for psychiatric injuries.

At Turks, we are monitoring developments closely and will continue to keep you updated.

In the interim, please feel free to reach out to any of our team should you have any questions about the latest reforms.