At approximately 9pm on 3 February 2026, the Upper House passed the Workers Compensation Legislation Amendment (Reform and Modernisation) Bill 2025, with a number of significant changes to the version that was previously passed in the Lower House in November 2025.

The Bill was accordingly returned to the Lower House, and at 3:30pm on 4 February 2026, the Lower House passed the amended version of the Bill.

The Bill now awaits assent.

The amendments that have been made to the Bill are again focused largely around primary psychological injuries including associated thresholds and entitlement periods.

The amendments further include a provision that the Minister and Treasurer can in the future reduce the thresholds for weekly payments, damages and medical expenses if it is in the public interest to do so.

In addition, a premium rate freeze until 30 June 2028 has been introduced. It is clear, however, that this does not prevent a variation in premiums for specific employers based on the current premium-setting methodology (for example, if an employer’s wages bill increases, this will still impact their premium).

We will continue to advise you further as we obtain clarity around the amendments, including the date of assent.

In the interim, please reach out to any of our workers compensation Partners should you have any questions or would like to discuss the impact of the Bill.