Australian organisations have made significant strides in prioritising physical work health and safety. However, it’s important for boards to bring the same level of focus and oversight to psychosocial risks.
Psychosocial risks can be challenging to identify and address. Unlike physical hazards, they are often less visible and may only become apparent after harm has occurred. They also vary widely between industries, organisations, and roles – meaning there is no one-size-fits-all approach to managing them.
KWM collaborated with the Australian Institute of Company Directors to develop a general guide to support directors strengthen their oversight of psychosocial risks.
You can access the resource here.
Our insights below cover recent updates in the safety space with a focus on New South Wales, Victoria, Queensland and legislative reforms for Workplace Gender Equality Agency reporting.
Psychosocial hazards under the microscope
Regulators in all Australian jurisdictions are dedicating additional resources to carrying out compliance and enforcement activities in connection with workplace psychosocial hazards.
Some recent highlights include:
- Last year, SafeWork NSW announced its Psychological Health and Safety Strategy 2024–2026, which outlines how the regulator intends to continue to raise awareness of psychological hazards in the workplace. SafeWork NSW has emphasised that businesses can expect additional planned inspector compliance visits and further revisits by inspectors to non-complying businesses, and inspectors will also be completing Psychosocial WHS Checks when visiting larger organisations. See our two part series on this development here and here.
- Furthermore, in New South Wales, the new Work Health and Safety Amendment (Standalone Regulator) Bill 2025 recently passed parliament and establishes SafeWork NSW as a standalone statutory regulator under the Work Health and Safety Act 2011 (NSW). Importantly, the bill requires SafeWork NSW to publish data on its regulatory actions, including by posting summaries of actions taken in relation to high-risk workplaces and repeat offenders (effectively ‘naming and shaming’ businesses), as well as completed investigations and their outcomes. SafeWork NSW continues in its transformation stage with the view to the regulator becoming a ‘modern, fit-for-purpose safety regulator’ and organisations can anticipate this will result in more rigorous regulatory practice.
- A recent announcement by the NSW Government shines the light on potential further legislative reform designed to address the rise of workplace psychological injuries. The NSW Government’s ministerial statement (accessible here) highlights that the number of psychological injury claims has doubled in the last six years (contrasting with all other injuries growing by just 16%), and that while an average of 88% of workers suffering from physical injuries returning to work within 13 weeks, 40% of workers with psychosocial injuries remain in the workers' compensation system after one year off work. Rises in claim numbers and durations results in increases to premiums and premiums are expected to rise by 36% over three years to 2027-28 even for organisations with a psychologically safe workplace and no claims.
See also the Insights articles recently published in this space in Victoria and Queensland.
Setting Gender Equality Targets Bill passes parliament
Initiatives to comply with Workplace Gender Equality Agency’s (WGEA) reporting expectations, and the related statutory obligations, significantly contribute towards creating a diverse and respectful workplace, which in turn assist businesses to comply with their positive duty to eliminate sexual harassment, sex-based harassment and other unlawful conduct. As you will read in the Primer, sex and gender based harassment, and sexual harassment, are recognised psychosocial hazards in the workplace and compliance with WGEA’s (soon to be statutory) expectations bolster an organisation’s compliance with its WHS duties.
Last year, WGEA, for the first time, required companies to report on the steps they are taking to respond to sexual harassment in their workplaces. WGEA’s findings, from over 7,000 medium and large employers, show that 99% of employers have a formal policy on sexual harassment and discrimination. However, there was a significant difference in respect of WHS planning and actions, with only two-thirds of organisations reporting control measures that eliminate or minimise the identified drivers and risks for sexual harassment so far as is reasonably practicable. Only 45% undertake consultation on the risks and mitigation of sexual harassment, and 55% regularly review the effectiveness of control measures. WGEA’s findings suggest organisations have work to do to foster the preventative framework and mitigate risks around sexual harassment, in addition to the organisation’s response strategies.
The Workplace Gender Equality Amendment (Setting Gender Equality Targets) Bill 2024, introduced in November 2024 and passed on 26 March 2025, will require organisations with 500 or more workers to commit to, achieve, or at a minimum improve on, a selected number of specific gender equality targets and provide updates on progress as part of annual WGEA reporting, which will be publicly available. The targets can include both numeric targets such as reducing the gender pay gap and improving gender equality on boards and in workforce composition. They can also include action-based targets such as introducing programs and initiatives. See our article on this development here.
All Australian organisations should turn their mind to their WHS duties and obligations particularly in light of the continuously changing statutory landscape. Management should also expect directors will endeavour to have increased oversight of psychosocial hazards and be prepared to proactively raise and have meaningful discussions at both the leadership and board level.
Please get in touch with a member of our team if you would like to discuss the matters outlined in the Primer or how these recent reforms impact your organisation and the practical steps your organisation can be taking to meet its work health and safety obligations.
Did you miss our recent session on workplace crisis management and reputational risk?
In today’s fast-paced media landscape, a single incident of workplace conduct can quickly escalate into a full-blown crisis. As part of KWM's Sprint to the Finish CPD program, we explored strategies to ensure your response to a crisis is not just reactive, but strategic. Learn how to navigate the legal complexities while effectively engaging stakeholders and managing regulatory and reputational risks. Watch the session on-demand here.
