How the 2024 WorkCover reforms continue to affect injured workers in 2026

Impact of 2024 WorkCover reforms on injured workers in 2026

Victoria’s WorkCover scheme has undergone some of the most significant changes in recent years, affecting thousands of injured workers across the state. Whether you have suffered a physical workplace injury, developed a psychological condition due to work, or are currently receiving weekly payments, understanding these changes is essential to protecting your rights.

Many injured workers remain unaware that new eligibility requirements now apply to mental injury claims and that additional criteria may affect access to weekly payments beyond 130 weeks. These reforms have created uncertainty for workers, employers and healthcare professionals alike.

In this guide, the Victorian compensation lawyers at PRD Compensation explain these 2024 WorkCover changes, who they affect, and what injured workers should do if they are concerned about their entitlements.

What Is WorkCover Victoria?

WorkCover is Victoria’s statutory workers compensation scheme administered by WorkSafe Victoria. The scheme provides support to workers who suffer injuries or illnesses arising out of, or during the course of, their employment.

Depending on the circumstances of your injury, WorkCover benefits may include:

  • Weekly income payments
  • Medical and rehabilitation expenses
  • Lump sum impairment compensation
  • Return to work support
  • Common law damages in serious cases

The scheme is designed to provide financial support while injured workers recover and return to suitable employment.

Why Were Changes Introduced?

The Victorian Government introduced reforms after concerns regarding the long-term sustainability of the WorkCover scheme.

A significant increase in psychological injury claims placed additional financial pressure on the system. Mental injury claims often involve longer recovery periods, higher treatment costs and lower return-to-work rates compared with many physical injuries.

As a result, legislative changes were introduced to alter eligibility requirements and payment entitlements.

Major Change #1: New Mental Injury Eligibility Rules

One of the most significant reforms relates to psychological injury claims.

Previously, workers only needed to demonstrate that their employment significantly contributed to the development of a psychological condition. Under the new legislation, workers must now demonstrate that their employment was the predominant cause of the mental injury. This is a substantially higher threshold.

WorkSafe may examine all contributing factors when determining whether employment was the predominant cause of the psychological injury. This has made many psychological claims more difficult to establish than in previous years.

Psychological Conditions That May Still Qualify

Despite the changes, many psychological injuries remain compensable.

Examples include:

  • PTSD
  • Anxiety disorders
  • Depression
  • Adjustment disorders
  • Acute stress disorders

Each case depends on medical evidence and workplace circumstances.

Stress and Burnout Claims

The reforms also introduced restrictions relating to workplace stress and burnout.

Workers may no longer be entitled to compensation where their condition is predominantly caused by stress or burnout arising from ordinary workplace pressures that would reasonably be expected within their role.

This area remains highly complex and often requires detailed legal assessment.

Examples may include:

  • Performance reviews
  • Reasonable management action
  • Routine workplace pressures
  • Organisational changes

However, every case depends on its specific facts.

Major Change #2: Weekly Payments Beyond 130 Weeks

Another major reform affects injured workers receiving weekly compensation payments.

Historically, many workers could continue receiving payments after 130 weeks if they met certain work capacity requirements. The new legislation introduced stricter eligibility criteria. This change affects both physical and psychological injury claims.

Workers approaching the 130-week mark should seek advice well before their entitlement review occurs.

Who Is Most Affected?

The reforms have particularly impacted:

Healthcare Workers

Healthcare workers continue to experience high rates of workplace violence, aggression and psychological injury.

Nurses, aged care workers and emergency department staff remain among the occupations most likely to lodge mental injury claims.

First Responders

Police officers, paramedics and firefighters frequently experience traumatic incidents that may result in PTSD and other psychological conditions.

Education Workers

Teachers and educational staff increasingly report psychological injuries associated with workplace stress, violence and behavioural incidents.

Transport and Logistics Workers

Physical injuries remain common in transport, warehousing and logistics industries due to manual handling, vehicle incidents and repetitive tasks.

What To Do If Your Claim Is Rejected

A rejected WorkCover claim does not necessarily mean the end of your entitlement.

Many claims are rejected due to:

  • Insufficient medical evidence
  • Disputes regarding causation
  • Incomplete documentation
  • Misunderstanding of legal eligibility requirements

In some situations, decisions can be challenged through the appropriate review processes.

Seeking legal advice early often improves the prospects of a successful outcome.

Common Mistakes Injured Workers Make

Delaying Medical Treatment

Early diagnosis and treatment are critical.

Failing To Report The Injury

Workers should notify their employer as soon as possible after becoming aware of an injury.

Incomplete Documentation

Supporting evidence plays a crucial role in determining eligibility.

Returning To Work Too Soon

Returning before medical clearance may worsen injuries and complicate claims.

Can You Still Bring A Common Law Claim?

Yes.

In some circumstances, injured workers may pursue a common law damages claim against their employer.

These claims generally require:

  • A serious injury certificate
  • Evidence of employer negligence
  • Proof of financial loss

Common law claims can provide compensation for:

  • Pain and suffering
  • Past loss of earnings
  • Future loss of earnings
  • Superannuation losses

Not every WorkCover claim qualifies, making legal advice important.

Why Legal Advice Matters More Than Ever

The recent WorkCover reforms have made compensation claims increasingly complex.

Eligibility thresholds have changed.

Psychological injury claims face greater scrutiny.

Workers approaching 130 weeks of weekly payments may face additional challenges.

Obtaining advice early can help ensure:

  • Claims are properly prepared
  • Evidence is appropriately gathered
  • Deadlines are met
  • Entitlements are fully protected

 

Speak With PRD Compensation

If you have suffered a workplace injury or your WorkCover claim has been rejected, obtaining early legal advice can make a significant difference.

The experienced team at PRD Compensation assists injured workers throughout Victoria with:

  • WorkCover claims
  • Psychological injury claims
  • Serious injury applications
  • Common law damages claims
  • Workplace accident compensation

Contact PRD Compensation today for a confidential assessment of your situation and advice regarding your legal options.

For more information: visit: the WorkSafe Victoria — “Scheme modernisation” 

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