The NSW Parliament has passed reforms to the workers compensation scheme.

Key measures include an 18-month cap on average premium increases, retention of Whole Person Impairment (WPI) thresholds, and the introduction of a new intensive Return to Work program providing additional medical and income support for eligible workers. The reforms also expand

Of particular note for employers is the introduction of a fixed employer excess per claim, requiring an upfront contribution of up to two weeks of income support (with the exact amount yet to be set by regulation). This applies to policies issued or renewed from 30 June 2026 and represents a material shift in upfront claim cost exposure, designed to encourage earlier intervention and more active early return-to-work management.

To reduce costs, employer need to ensure procedures for quick injury reporting, early intervention and timely implementation of suitable duties.  The more proactive you are at reporting and addressing the injury, the less financial exposure you can expect to face.

While legislation has now passed, a number of operational details remain subject to regulations and guidance. Early implementation measures have already commenced, including the premium rate freeze for the 2026–27 and 2027–28 policy periods.

You can read more about the changes here.