NSW workers compensation legislation amendments

About the NSW workers compensation legislation amendments

What has changed?

The Workers Compensation Legislation Amendment Act 2025 and the Workers Compensation Legislation Amendment (Reform and Modernisation) Act 2026 introduce changes that affect coal mine workers, employers and the Coal Mines Insurance (CMI) scheme.

Most changes for coal miners are limited. However, the reforms include broader changes to the NSW workers compensation scheme, particularly for psychological injury claims involving non-coal mine workers.

When do the changes take effect?

Many of the reforms commenced on 1 July 2026.

• For non-coal miners, these include significant changes to the eligibility criteria and impairment thresholds for primary psychological injury claims.
• For all workers (including coal miners), the reforms allow parties to negotiate lump sum death benefits where there is a reasonable basis to dispute liability, and weekly compensation benefits are now indexed annually rather than biannually.

From 1 October 2026, the test for approving medical and treatment expenses will change from “reasonably necessary” to “reasonable and necessary”.

• This new test applies to all workers, including coal miners, exempt workers and volunteers.
• The change does not apply to dust disease claims.
• The new test applies to medical and treatment expense claims made on or after 1 October 2026.

Medical and treatment expense claims made before 1 October 2026 will continue to be assessed under the current test if:

• liability has not yet been finally determined by the insurer; or
• the claim has been approved, but treatment has not started or has not yet been completed.