.png)
NSW Workers Compensation Reforms: What Aquatic Employers Need to Know About Psychological Injury Claims
- Jul 10
- 2 min read
Updated: Jul 16
From 1 July 2026, significant changes to the NSW Workers Compensation Scheme have come into effect, introducing new requirements for psychological injury claims.
For aquatic facilities, swim schools, local governments and recreation providers, these reforms reinforce the importance of effective leadership, sound management practices and robust psychosocial risk management.
What do these reforms mean for the aquatic industry?
Aquatic workplaces face unique psychosocial hazards. Managing challenging customer interactions, responding to critical incidents, supervising high-risk environments, shift work, seasonal staffing and performance management can all contribute to workplace stress if not managed appropriately.
The reforms provide greater clarity around when psychological injury claims will be accepted, while strengthening protections for employers who undertake reasonable management action supported by fair processes and appropriate evidence.
Facilities that maintain strong governance, document workplace decisions and proactively manage psychosocial risks will be better placed to respond to claims and demonstrate compliance.
Key changes
The reforms introduce several important changes for employers:
Higher eligibility thresholds now apply for psychological injury claims. Workers must demonstrate that employment was the main contributing factor to their injury and provide evidence linking the injury to a specific workplace event or conduct.
Reasonable management action protections have been strengthened, providing greater certainty where claims arise from lawful and reasonable actions such as performance management, disciplinary processes, rostering decisions or workplace investigations.
Bullying, harassment and excessive workload claims are now subject to a dedicated assessment process, with insurers provided up to 42 days to investigate and determine liability.
Greater emphasis is placed on objective workplace evidence, making accurate records, incident reports, workplace investigations, supervision records and management documentation increasingly important.
Higher Whole Person Impairment (WPI) thresholds now apply for workers seeking access to long-term weekly compensation benefits for primary psychological injuries.
These reforms generally apply to primary psychological injury claims notified on or after 1 July 2026.
What should aquatic employers do?
These changes are an opportunity for aquatic organisations to review how they manage psychosocial health and safety within their workplace.
Drowning Prevention Australia recommends organisations:
Review psychosocial hazard management processes in line with NSW WHS requirements.
Ensure managers and supervisors are trained in appropriate performance management, workplace investigations and difficult conversations.
Maintain accurate and contemporaneous documentation of workplace decisions and management actions.
Review bullying, harassment, complaints and incident reporting procedures.
Assess whether current workplace systems adequately identify and control psychosocial risks before they lead to injury.
How Drowning Prevention Australia can help
Drowning Prevention Australia works with aquatic organisations to strengthen workplace health and safety systems maturity.
Our services include:
Psychosocial Risk Assessments
Psychosocial Management System Reviews
Psychosocial Investigations and Support
Psychosocial Risk Management Training
Psychosocial Resources, Information and Guides
By strengthening workplace systems, leadership capability and organisational governance, aquatic employers can create healthier workplaces while reducing the likelihood of both psychological injuries and compensation claims.
For more information about DPA's workplace health and safety services, or to discuss how these reforms may affect your organisation, contact the Drowning Prevention Australia team.
Comments