NSW workers compensation reform - Key change for employers

Key reform to the workers compensation scheme commenced on 1 July 2026. The primary purpose of the changes is to ensure the workers compensation scheme is sustainable and can continue to support workers and employers into the future.

Penalties for not holding a workers compensation policy has increased:

• Penalties may include $11,000 for a large employer, or $5,500 for any other employer

• Employers may also be fined double the premium avoided for the past five years

• Employers could be issued a court-imposed penalty of at least $110,000 and up to 2 years imprisonment for large employers, or $55,000 and up to 6 months imprisonment for other employers.

There is a new offence for failing to provide information relevant to premium calculations:

• Penalties may include $11,000 for a large employer, or $5,500 for any other employer

• Employers could be issued a court-imposed penalty of at least $110,000 and up to 2 years imprisonment for large employers, or $55,000 and up to 6 months imprisonment for other employers. 

Key changes affecting employers - including impacts on policy, penalties and psychological injury claims are available at Key changes for employers - Workers compensation legislative reform 2026.

Further information about the full range of changes to the workers compensation legislation and frequently asked questions can be found at SIRA's workers compensation information hub.