Latest Victorian Workers' Compensation Amendments - What self-insurers need to do

The Workplace Injury Rehabilitation and Compensation Amendment Act 2025 (Amendment Act) aims to implement recommendations from the independent review of WorkSafe Victoria’s management of complex workers’ compensation claims undertaken by Peter Rozen KC. The Review was in response to a Victorian Ombudsman’s 2019 recommendation to commission an independent review of the agent model.

The Amendment Act has now passed Victoria’s Parliament without amendments. The Amendment Act’s key objectives and key reforms are:

• To improve the experience of injured workers accessing the scheme.
• To establish a Code of Claimants’ Rights.
• To require a Return-To-Work Coordinator to be appointed by employers with mandatory training.
• To increase benefits for hearing loss and death claims.
• The addition of ‘lived experience members’ to the Occupational Health and Safety Advisory Committee and the WorkSafe Advisory Committee to enhance the support and benefits for family members of deceased workers.

The Amendment Act has effect from Wednesday 6 August 2025.

Code of Claimant’s Rights

Part of the 49-page Amendment Act develops a "Code of Claimants' Rights" as a legislative instrument, under the State Workplace Injury Rehabilitation and Compensation Act 2013.

In most cases the code enshrines conduct already typical of most self-insurers, namely:

1. Ensuring all interactions with Claimants are fair, respectful, and uphold dignity.
2. The delivery of high-quality services in managing claims and providing support.
3. Prompt and professional responses to inquiries and concerns.
4. The promotion of Claimants’ rights.
5. The providing of clear, accessible pathways for Claimants to lodge complaints. Subsequent, investigation and resolution of complaints in accordance with the Code.
6. In the event a complaint is substantiated, application the appropriate remedies as outlined within the Code.

If the Code of Claimants’ Rights is infringed, the Amendment Act affords Claimants the mechanism to make a complaint to report misconduct or poor service. In order to lodge a complaint, a Claimant will need to identify what the complaint relates to – for example; poor treatment by WorkSafe, a self-insurer, agent or breach of service standards. The Claimant will then need to contact the self-insurer managing the claim. If the complaint remains unresolved, the Claimant can raise this with WorkSafe Victoria. If the complaint still remains unresolved, the Claimant can lodge a formal complaint with the Workplace Injury Commission, which will oversee compliance with the Code of Rights. A Claimant may also contact the Victorian Ombudsman if they believe the complaint was mishandled or ignored.

The Code itself does not impose criminal penalties, it establishes mechanisms for accountability and redress.

Should a complaint proceed to the WIC terms reached during dispute resolution can be certified through agreements, making them enforceable.

The preparation and release of draft Code of Claimants' Rights for public comment Code of Claimants' Rights must be issued as a proposed version for public review and comment prior to a recommendation is made to the Minister.

The Code of Claimants' Rights must provide for the following matters

1. the rights of claimants under the Code;
2. the obligations of the Authority, its agents and self-insurers in providing services to claimants so as to ensure the rights of claimants are promoted and 10 upheld;
3. who has obligations under the Code;
4. a procedure for lodging and dealing with complaints in relation to non-compliance with the Code by the 15 Authority, its agents or self-insurers;
5. remedies that apply if any complaints are substantiated

As such, we will not be aware of the potential remedies with respect to an infringement of the Code of Claimants' Rights until this process has occurred.

Return to Work Coordinators

The Amendment Act requires employers to ensure that any person they appoint as a Return-To-Work Coordinator completes approved training within a required period or holds an approved qualification. They must also provide Return-To-Work Coordinators with the facilities and assistance they reasonably require to perform their functions for example, allow paid absence from employment to complete the training. There is no detail regarding funding, and it appears that this training will be undertaken at employers’ expense.

In terms of timeframes:

• Large Employers (rateable remuneration of $2,967,330 or more, indexed annually):
  • Must always have an appointed RTW Coordinator who has completed approved training.
  • The training must be completed promptly upon appointment.
• Smaller Employers (rateable remuneration below the threshold):
  • Must appoint a RTW Coordinator only when they have an obligation to a worker with incapacity.
  • The coordinator must complete training within the duration of that obligation.

The specific deadlines for compliance are expected to be outlined in regulations or guidance issued by WorkSafe Victoria in due course.

There are penalties for non-compliance and failure to ensure training completion:

• Natural Person: 120 penalty units
• Body Corporate: 600 penalty units.

There are penalties for non-compliance and failure to provide facilities and assistance:

• Natural Person: 120 penalty units.
• Body Corporate: 600 penalty units.

Changes to Hearing Loss Entitlements

For hearing loss, the Amendment Act provides that the degree of impairment must be assessed as a binaural loss of hearing and determined by a medical practitioner in the manner approved by the Minister. The Amendment Act increases the compensation amounts for non-economic loss due to impairment. For example:

• From $2,830 to $3,360
• From $1,860 to $2,210
• From $4,700 to $5,600

The compensation amounts are also indexed to reflect changes in the consumer price index, ensuring they remain fair and relevant over time.

Changes Relevant to Death Claims

Other changes relate death claims:

• "grief and loss" payments of $10,000 (in addition to existing entitlements) to "each close family member" of a deceased worker,
• To fund a broader range of therapy and other supports for family members of deceased workers and those suffering from relevant progressive diseases or severe injuries, and
• To facilitate the appointment of persons directly or indirectly affected by workplace incidents involving deaths, serious injuries or illnesses to WorkSafe's advisory committees.

A close family member has been identified as:

“a close family member of a worker means a person who, at the time of the worker's death— (a) was a partner, parent, guardian, step-parent, grandparent, sibling or step-sibling of the worker or a 35 person to whom the worker was a parent, step-parent or guardian; and (b) had a genuine personal relationship with the worker."

The period for provisional payments has also been extended from 12 weeks to 13 weeks with provisional payments now included in weekly pensions for dependants of a deceased worker only. This timeframe is applicable to weekly pension only. Medical and other costs remain payable under section 99(1)(a) up to a maximum of $8,270.

The Amendment Act also now provides for provisional payments to cover the reasonable costs of forensic cleaning services if a worker's death occurred at home.

Amendments to Occupational Health and Safety Act 2004

• Advisory Committee:  the Occupational Health and Safety Advisory Committee is associated with WorkSafe Victoria. This committee plays a role in advising on matters related to workplace health and safety, and the amendments aim to enhance its effectiveness by including members with lived experience of workplace incidents.

The Amendment Bills now provides that the advisory committee will include two persons who have been directly or indirectly affected by a workplace incident involving death or serious injury/illness. These two members are to be by appointment by the Minister which will aim to ensure that the Committee benefits from the insights and perspectives of those who have firsthand experience with workplace incidents.

What steps should self-insurers immediately take?

1. Create and document an internal review process specific to the Code of Claimants' Rights and potential complaints that is underpinned by procedural fairness. The process would ordinarily mirror current procedures for internal review but would refer specifically to the Code of Claimants' Rights complaints; and
2. Source and arrange training for all Return to Work Coordinators.

References

Click here to view the Workplace Injury Rehabilitation and Compensation Amendment Act 2025, Second Reading Transcript

Click here to view the Workplace Injury Rehabilitation and Compensation Amendment Act 2025

Click here to view the Explanatory Memorandum to the Workplace Injury Rehabilitation and Compensation Amendment Act 2025