Scheme modernisation

Changes have been made to the eligibility criteria for mental injury compensation.

These changes will only apply to new mental injuries that occurred on, or after 31 March 2024.

A new mental injury definition

A mental injury is now defined as an injury that:

1. causes significant behavioural, cognitive or psychological dysfunction, and
2. has been diagnosed by a medical practitioner in accordance with the Diagnostic Statistical Manual of Mental Disorders

A mental injury must meet this definition to be eligible for compensation.

Supporting mental injuries predominately caused by employment

For primary mental injury claims, employment must be the strongest or largest contributing cause of a worker's mental injury for it to be eligible for compensation.

A new exclusion for stress and burnout

Workers will not be eligible for compensation where a primary mental injury has been mainly caused by stress or burnout as a result of events that are considered usual or typical and are reasonably expected to occur in the course of their duties.

A worker may remain eligible for compensation in some situations, including:

• repeated and unreasonable conflict with people, which is considered bullying and harassment
• if a worker's mental injury has been predominantly caused by stress or burnout resulting from traumatic events that are considered usual or typical and reasonably expected to occur in their work

Information about the changes to mental injury eligibility

Information sheet: Mental injury eligibility

Practice directive – Mental injury eligibility

New whole person impairment requirement

There is now an additional requirement to continue to receive weekly payments after the 130-week second entitlement period.

To continue receiving weekly payments after 130 weeks, workers must:

• have a whole person impairment (WPI) of 21% or more and
• meet the existing capacity test requirement

The WPI requirement will only apply to claims that reached 130 weeks on, or after 31 March 2024.

Information about WPI

Information sheet: Whole person impairment

Practice directive – Whole person impairment for ongoing entitlement to weekly payments

A number of supporting changes have also been made to improve the way the WorkCover scheme operates and make sure the changes in the Scheme Modernisation Act are effective. These include:

• changes to WorkSafe's ability to share information across business units
• a requirement for certain rejected claims that can't be resolved through conciliation to be determined by the courts, instead of arbitration
• an independent review of the changes introduced under the Scheme Modernisation Act to be conducted by a panel of experts in 2027
• the establishment of the Return to Work Advisory Committee, to provide advice to the WorkSafe Victoria Board on return to work initiatives