Article
More than 400 workers lodge a serious workers’ compensation claim in Australia every day.¹ Behind that number are injuries that might have been caught earlier, recoveries that can drag on, and mental health claims that are rising sharply.
As 2026 closes, here’s what the data, the law and the shift floor told us, and where to focus in 2027.
What the numbers from Safe Work Australia tell us
- Serious claims aren’t slowing. About 147,200 serious claims (a week or more off work) were recorded in 2024–25.
- Six industries carry the load. They account for 61% of serious claims. They are agriculture, forestry and fishing; transport, postal and warehousing; construction; manufacturing; health care and social assistance; and public administration and safety.
- Body stressing is the biggest driver. It made up 34.5% of serious claims in 2023–24, ahead of falls, slips and trips (21.8%) and being hit by moving objects (16.0%).
- Mental health claims are growing fast and are costly. Claims for mental health conditions have risen 169% over the past decade and now make up about 12% of serious claims. The median claim involves 34.8 weeks off work, almost five times longer than other serious claims, with median compensation of $68,600 (2023–24 Safe Work data). Harassment or bullying and work pressure are the leading causes.
- Recovery is under pressure. Safe Work Australia’s 2025 National Return to Work Survey points to a fall in the proportion of injured workers returning to work.²
Inside the minds: what the mental health data adds
EML’s Inside the Minds of Australia’s Workplaces 2026: Making Work, Work Better draws on a survey of 4,065 workers and 831 managers and leaders, alongside analysis of four national datasets by Monash University’s Healthy Working Lives Research Group.³ Three findings stand out:
- The cost shows up in retention. 34% of workers have left a job because of its impact on their mental health.
- Claims don’t tell the whole story. 45% aren’t comfortable disclosing a mental health condition to their employer.
- Job design is where employers have control. Only 56% of managers and leaders agree workloads in their organisation are sustainable long term.
The report’s central point is that awareness alone isn’t enough. High demands combined with low control, unclear roles and limited support can increase psychosocial risk, so job design matters.
What changed in the law
NSW changed both sides of the system on 1 July 2026. Employers must now comply with the Code of Practice on managing psychosocial hazards, or show an equivalent or higher standard of safety. Separately, claims for psychological injury face stricter rules and a higher impairment threshold for longer-term benefits, which rises again from 1 July 2027. Some workers, including police, paramedics, firefighters and coal miners, are exempt. Access to compensation is narrowing, but the duty to prevent harm remains. Read more from the NSW Personal Injury Commission.
A national rethink could be on the table. On 19 October, Safe Work Australia published its Best Practice Review of the model WHS laws, with 21 recommendations.⁵ They point toward greater national consistency and a stronger focus on psychosocial hazards and emerging risks. They’re proposals only, but they signal where regulation may be heading.
What 2026 taught us
- Claims show only part of the picture. With many workers reluctant to disclose or claim, claims data alone can understate what’s happening in your workforce.
- Body and mind are one risk picture. Almost one in three workers with a long-duration physical injury go on to develop signs of secondary psychological injury, according to Safe Work Australia-commissioned Monash research.⁴ Treating the two separately can leave exposure on the table.
- Culture and job design shape whether you hear early. A theme in our July panel with EML was that workers need to believe that if they report, they get support.
Where to focus in 2027, and why
- Treat body stressing as a prevention problem.
It’s the most common claim mechanism. Task Analysis can show where risk is really hiding, 3D Functional Screening can flag movement issues before they become pain or a claim, and Pre-Employment Screening helps match people to job demands. This can matter even more with new starters and workforce shortages. - Design healthier work.
Look at where high demands meet low control, unclear roles or limited support. Audit your psychosocial hazards, consult your workers and document your controls. NSW has made its psychosocial code of practice enforceable, and the national review signals there could be more attention to psychosocial hazards. Mental Health First Aid Training for leaders can be a practical starting point. - Equip supervisors to intervene early.
Supervisors often see the first signs: a worker moving differently, going quiet or pushing through pain. EML’s report points to giving managers the authority, tools and support to act early. - Find where risk is concentrated, and measure before the claim.
Use workforce data such as absence, turnover, disclosure, exposure and recovery indicators to match the response to the problem. Track early reporting rates and time to first assessment alongside claim numbers. - Plan the year, not just the incident.
Build injury prevention into your calendar before the year gets busy. Schedule prevention activities such as task reviews, screening and supervisor training around the dates that matter, from Safe Work Month to R U OK? Day, and around your own peak periods and new starter intakes.
Start your 2027 plan
The best time to plan next year’s health, safety and wellbeing strategy and initiatives before the year starts. Download our free 2027 Workplace Health, Safety & Wellbeing Calendar for a head start or talk to our team about 2027 strategy for your workplace.