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Workers compensation for mental health in NSW: can you claim, and how

NSW workers comp psychology - guide cluster: Pathway overview (pillar) ↑ · Full psychological injury guide · Stress leave explained · SIRA vs Medicare

A lot of people don't realise workers compensation applies to mental health at all - most of what gets talked about publicly is physical injury. It does apply, and the treatment side is often more straightforward than people expect. This guide answers the question plainly, then points you to the detail you need next.

Does workers comp cover mental health conditions in NSW?

Yes, but psychological injury has its own tests. For a primary psychological injury (one that is not secondary to a physical injury), section 8O also requires that a relevant event or series of relevant events caused the injury, that there is a real and direct connection between those events and the worker's employment, and that employment is the main contributing factor to the injury. The psychological injury pathway also has requirements built around getting a proper diagnosis and, for claims involving management action, the section 11A exclusion.

Conditions commonly accepted include:

• Post-traumatic stress disorder (PTSD) - from a specific traumatic incident (assault, serious accident, witnessing harm)
• Adjustment disorder - from excessive work demands
• Anxiety disorders - caused or worsened by bullying, or sexual or racial harassment
• Depressive episodes - following a specific workplace event
• Secondary psychological injury - a condition (commonly depression) that develops as a consequence of a physical workplace injury, such as chronic pain

For the complete walkthrough of eligibility and the claims process, see our full guide: psychological injury claims under NSW workers compensation.

What doesn't count

Not every difficult day at work is compensable, and general dissatisfaction or ordinary workplace stress is not enough on its own. Three things commonly limit a mental health claim:

• No specific diagnosis. A certificate that says only "stress" or "burnout," without a clinical diagnosis, is unlikely to succeed. Insurers assess against a diagnosed condition, not a symptom description.
• No relevant event. Relevant events are listed in section 8G and include violence or a threat of violence, bullying, sexual or racial harassment, excessive work demands, witnessing a traumatic incident, and vicarious trauma. SIRA says that if a worker's psychological injury was caused by something that is not on the list of relevant events, they will not be entitled to compensation.
• The section 11A exclusion. Since 1 July 2026, section 11A of the Workers Compensation Act 1987 (NSW) provides that no compensation is payable for a psychological injury if the significant cause of the injury was reasonable management action taken or proposed to be taken by the employer, the worker's expectation of reasonable management action, or the worker's perception of reasonable management action. Reasonable management action is defined in section 8F as management action taken in a reasonable way and that is reasonable in all the circumstances. These rules apply to injuries first notified to the employer on or after 1 July 2026. For an injury the employer was notified of before that date, and for police officers, paramedics, firefighters, coal miners and volunteer claims under the Workers Compensation (Bush Fire, Emergency and Rescue Services) Act 1987, the earlier version of the law continues to apply. See our guide to work-related stress claims and section 11A for the detail.

How a mental health claim works, in brief

1. Report the injury to your employer in writing as soon as you're aware it may be work-related.
2. See your GP for a Workers Compensation Certificate of Capacity with a specific diagnosis.
3. Start treatment with a SIRA-approved psychologist, who submits an Allied Health Treatment Request (AHTR) to the insurer - treatment can usually begin before formal approval.
4. The insurer decides liability and, if accepted, funds ongoing sessions at no cost to you and, where relevant, weekly income replacement.

For the full timeline of how long each step typically takes, see our guide to the NSW workers compensation claim timeline.

Workers comp vs Medicare for mental health treatment

If you're weighing up whether to go through workers comp or Medicare for psychological treatment, the two schemes work quite differently:

For the full fee breakdown, see our guide to SIRA vs Medicare for psychology in NSW.

Telehealth for mental health treatment

Telehealth is available under both schemes and, under workers compensation, is billed at the same SIRA gazetted rate as in-person sessions - there's no cost difference to you. See our guide to finding a SIRA-approved psychologist for telehealth.

Frequently asked questions

Can I claim workers compensation for a mental health condition in NSW?

Yes. Under the Workers Compensation Act 1987 (NSW), a mental health condition can be compensable if it arose out of or in the course of your employment and a medical professional has given a specific diagnosis. For a primary psychological injury first notified to the employer on or after 1 July 2026, section 8O also requires that a relevant event listed in section 8G caused the injury, that there is a real and direct connection between that event and your employment, and that employment is the main contributing factor. The claim must also not fall within the section 11A "reasonable management action" exclusion.

What mental health conditions are covered by NSW workers compensation?

Commonly accepted conditions include PTSD, adjustment disorder, anxiety disorders, and depressive episodes where the legal tests are met, plus secondary psychological injuries that develop from a physical workplace injury.

Do I need a specific diagnosis, or is "stress" or "burnout" enough?

In practice, insurers assess claims against a specific, diagnosable condition. A certificate that lists only "stress" or "burnout" without a clinical diagnosis is less likely to support a successful claim - ask your GP or psychologist for a specific diagnosis.

Is workers compensation for mental health different from Medicare mental health care?

Yes. Workers comp requires the condition to be work-caused and insurer-accepted, but then funds treatment fully with no gap fee and no fixed session cap. Medicare is available regardless of cause via a GP Mental Health Treatment Plan, but usually involves a gap fee and a cap of up to 10 sessions per year.

Can I access mental health treatment via telehealth under workers comp?

Yes. Telehealth sessions are billed at the same SIRA gazetted rate as in-person sessions, with no difference in cost to the worker for approved claims.