If you’re injured at work in NSW, tell your employer as soon as possible, see a doctor and get a certificate of capacity, and make your claim with your employer’s insurer. In most cases you should claim within 6 months of the injury. Workers compensation can cover weekly payments while you can’t work (up to 95% of your pre-injury average weekly earnings at first), reasonable medical and related expenses, and in some cases a lump sum for permanent impairment. NSW workers compensation laws changed from 1 July 2026, particularly for psychological injuries. If your claim is denied or your payments stop, you can ask for a review, and the Independent Review Office (IRO) can fund a lawyer for eligible workers.
This page is general information about NSW workers compensation, not legal advice. The rules changed in 2026 and depend on your injury type and when you claimed. Speak to a lawyer about your situation.
What is workers compensation?
Workers compensation is a no-fault insurance scheme. Every NSW employer must hold a workers compensation policy, and if you’re injured or become ill because of your work, the insurer pays your benefits. You don’t need to prove your employer did anything wrong. You do need to show the injury arose out of or in the course of your employment, and that your employment was a substantial contributing factor.
In NSW, “workers compensation” and “WorkCover” are often used to mean the same thing. WorkCover NSW was replaced in 2015, and the scheme is now regulated by the State Insurance Regulatory Authority (SIRA), with icare managing the government insurer. See our article on whether WorkCover and workers compensation are the same.
Who is covered?
Most employees are covered, whether full-time, part-time or casual. Some contractors are treated as workers for workers compensation purposes, depending on the arrangement. Injuries can include physical injuries, diseases caused or made worse by work, and psychological injuries. Some journeys to and from work are also covered. If you’re unsure whether you’re covered, get advice before you assume you’re not.
What to do if you’re injured at work
- Get medical help. Your health comes first. Tell the doctor the injury happened at work.
- Tell your employer as soon as possible. According to SIRA, you must inform your employer as soon as possible, giving the date and time (or the period over which the injury developed), how it happened and a description of the injury. Make sure it’s recorded in the register of injuries.
- Get a certificate of capacity. Your doctor completes a certificate of capacity, which records your injury and what work, if any, you can do. You’ll need updated certificates while you’re off work.
- Your employer notifies the insurer. Your employer must report the injury to its insurer within 48 hours of becoming aware of it. The insurer must contact you within 3 business days of being notified and give you a claim number.
- Make your claim. Complete the claim form and give it to your employer or the insurer, along with your certificate of capacity.
- Keep records. Keep copies of every form, certificate, receipt and letter, and note every conversation with the insurer.
If you can’t contact your employer, or you don’t know who their insurer is, the Independent Review Office (IRO) can help on 13 94 76. If your employer doesn’t have insurance, you can still claim through icare’s uninsured claims process.
How long do you have to make a claim?
According to SIRA, a claim should be made within 6 months of the injury or death. Late claims can still be accepted in some cases:
- up to 3 years after the injury if there’s a reasonable cause for the delay, for example if you were outside NSW
- after 3 years for death or serious and permanent impairment, where there’s reasonable cause
- after 3 years with SIRA’s approval in other cases
Don’t rely on the exceptions. The longer you wait, the harder it can be to link the injury to work, and the more payments you may miss out on.
What happens after you claim
According to the Independent Review Office, the insurer must tell you within 7 days whether it will start payments. It may start “provisional” payments straight away while it investigates, or ask for more information. If it needs more information, it must explain what’s missing. The insurer may arrange for you to see an independent medical examiner, and it will work with you, your doctor and your employer on a return to work plan.
What workers compensation covers
Weekly payments
If you can’t work, or can only work reduced hours, you may receive weekly payments. According to icare, you could be paid up to 95% of your pre-injury average weekly earnings (PIAWE) for a set period. PIAWE is based on what you earned before the injury, including overtime and shift allowances for the first 52 weeks. Payments are capped at a maximum weekly amount that’s indexed twice a year.
- First 13 weeks: up to 95% of PIAWE.
- Weeks 14 to 130: generally up to 80% of PIAWE if you’re not working, or higher if you’re back at work for at least 15 hours a week.
- After 130 weeks: payments generally continue only in limited cases, for example where you have no current work capacity or a high level of permanent impairment. The 2026 reforms tightened this for psychological injuries (see below).
Medical and related expenses
Workers compensation can pay for treatment and related costs, such as doctor and specialist visits, physiotherapy, psychology, hospital costs, medication, rehabilitation, and in some cases travel to treatment and domestic assistance. The insurer may need to approve treatment before it happens, so check before you book. Keep every receipt.
Lump sum for permanent impairment
If your injury leaves you with a permanent impairment, you may be entitled to a lump sum. The impairment is assessed as a percentage of “whole person impairment” (WPI), and there are minimum thresholds. For physical injuries, the threshold is more than 10% WPI. For psychological injuries, the threshold is higher and was raised by the 2026 reforms.
Work injury damages
If your employer was negligent and your injury is serious enough, you may be able to claim work injury damages for past and future lost earnings. This requires a high WPI threshold and has strict procedures. Get advice early if you think it may apply.
Death benefits
If a worker dies because of a work injury, their dependants may be entitled to a lump sum death benefit, weekly payments for dependent children and funeral expenses.
The 2026 workers compensation reforms
NSW passed major workers compensation reforms in late 2025 and early 2026. According to SIRA, the reforms passed Parliament on 4 February 2026 and include a phased increase in the whole person impairment thresholds for psychological injury, a new return to work program for workers with a psychological injury, and a review of how permanent impairment is assessed for psychological injuries. SIRA says the laws changed from 1 July 2026, and that what the changes mean “will depend on the type of injury and when a claim was made or notified”.
The changes for psychological injury claims include a narrower test for which claims are covered (for example, claims linked to a “relevant event” such as bullying, harassment or excessive work demands), limits on weekly payments for primary psychological injuries, and higher thresholds for lump sums and damages that increase in stages to 2029.
If you made a claim before 1 July 2026, different rules may apply to you. This is an area where getting advice matters.
If your claim is denied, or payments stop
Insurers can decline a claim, reduce or stop weekly payments, or refuse to approve treatment. If that happens:
- Read the decision letter carefully. It must explain the reasons and how to ask for a review.
- Ask for an internal review by the insurer, if that’s the right step for your type of decision.
- Contact the IRO. The IRO can take a complaint about how the insurer handled your claim, such as delayed payments or treatment that wasn’t approved, and try to resolve it.
- Get legal advice. Through the IRO’s Independent Legal Assistance and Review Service (ILARS), eligible workers can have a lawyer funded to advise them and challenge the decision. Legal fees and some expenses may be covered.
- Take the dispute further. Unresolved disputes can go to the Personal Injury Commission, which decides workers compensation disputes in NSW.
Common reasons claims are denied
- The insurer says the injury didn’t happen at work, or work wasn’t a substantial contributing factor
- The injury was reported late, or there are gaps in the medical evidence
- A pre-existing condition. A work-related aggravation of a pre-existing condition can still be covered. See pre-existing conditions and workers comp
- For psychological injuries, the insurer says the injury was caused by reasonable management action, such as performance management or discipline
Common mistakes to avoid
- Waiting to report the injury. Report it straight away, even if it seems minor. Injuries often get worse.
- Not seeing a doctor, or not saying it was a work injury. Your medical records are key evidence.
- Letting certificates of capacity lapse. Payments can stop if you don’t have a current certificate.
- Not taking part in your return to work plan. You’re expected to participate in reasonable return to work activities.
- Signing documents or settling without advice, especially anything about lump sums or work injury damages.
- Posting about your injury or activities on social media. Insurers may look.
Workers compensation and other claims
- Car accidents on the way to work, or while working. A crash during work or on some journeys may involve both workers compensation and CTP. See our guide to car accident compensation in NSW.
- Injuries caused by someone other than your employer. You may have a separate claim against that third party. See our guide to suing for negligence in NSW.
- If you can’t return to work at all. You may also be able to claim total and permanent disability (TPD) insurance through your super. See how to make a TPD claim.
For more on specific injuries, see the most common workplace injuries.
Do you need a lawyer?
Many workers manage simple claims without a lawyer. Legal advice is especially worth getting if your claim is denied, your payments are cut or stopped, you have a psychological injury, you may have a permanent impairment, or your employer may have been negligent. Under ILARS, eligible workers may be able to get legal advice funded, so cost doesn’t have to stop you getting help.
The bottom line
Report your injury quickly, see a doctor and keep your certificates current, and claim within 6 months. Weekly payments start at up to 95% of your pre-injury earnings and step down over time, and medical expenses and lump sums may also be available. The 2026 reforms changed the rules, especially for psychological injuries, so check how they apply to you.
McDonnell Schroder Solicitors & Conveyancers has helped injured workers in Western Sydney for more than 50 years, from our offices in Blacktown and Schofields. Your first consultation is free. Call (02) 9622 1155 or see our workers compensation lawyers page.
Frequently asked questions
How long do I have to claim workers compensation in NSW?
You should claim within 6 months of the injury. Late claims can be accepted up to 3 years later with reasonable cause, and after 3 years in limited cases.
How much does workers compensation pay?
Up to 95% of your pre-injury average weekly earnings for the first 13 weeks, then generally less, up to an indexed maximum. You may also get medical expenses and, for permanent impairment above the threshold, a lump sum.
Can I choose my own doctor?
Yes. You can choose your own nominated treating doctor. The insurer may also ask you to attend an independent medical examination.
What if my employer says it wasn’t a work injury?
The insurer, not your employer, decides the claim. If it’s denied, you can ask for a review and get advice through the IRO.
Has workers compensation changed in 2026?
Yes. Reforms that took effect from 1 July 2026 mainly affect psychological injury claims, including higher impairment thresholds and limits on weekly payments. Get advice about how they apply to your claim.
