Big changes are coming to Workers Compensation in Western Australia 2025

Author: Dr David Brentnall

From premiums to psychosocial risk changes, we look ahead to five changes kicking in this year and how they could impact you.

In 2025, Western Australia has implemented significant reforms in both workers’ compensation and workplace health and safety (WHS) legislation, aiming to modernize and enhance the system for all stakeholders.

Key Changes in Workers’ Compensation:

1. Modernization of Legislation

The Workers’ Compensation and Injury Management Act 2023 replaced the outdated 1981 legislation, effective from July 1, 2024. This overhaul aims to provide clearer, more efficient processes for both employers and employees.

2. Enhanced Financial Support for Injured Workers

The Act doubles the limit for medical and health expenses and extends the duration before a reduction in weekly compensation payments from 13 to 26 weeks, ensuring better financial support during recovery.

3. Revised Calculation of Weekly Income

Compensation calculations now consider the worker’s earnings for the year preceding the injury or the period of employment if less than a year, providing a fairer assessment of income loss.

4. Comprehensive Coverage for Catastrophic Injuries

Workers who suffer catastrophic injuries are now included under the Catastrophic Injuries Support Scheme, ensuring lifetime care and support similar to provisions for motor vehicle accidents.

5. Ban on Engineered Stone Products

Due to health risks associated with silica exposure, a ban on the importation of engineered stone products will take effect from January 1, 2025, following earlier restrictions on their use and manufacture.

 

In 2025, Western Australian employers must navigate substantial changes in workers’ compensation and workplace health and safety laws, leading to increased financial obligations, stricter compliance requirements, and necessary operational adjustments. Proactive adaptation to these reforms is essential to mitigate legal and reputational risks.

Here are the key challenges employers might face. Implications for Employers in Western Australia:

1. Increased Financial Obligations

Enhanced compensation benefits may lead to higher insurance premiums and increased costs associated with extended support for injured workers.

2. Stricter Compliance Requirements

Aligning with federal standards necessitates updates to workplace policies, particularly concerning sexual harassment, flexible work arrangements, and casual employment terms.

3. Operational Adjustments

The ban on engineered stone products requires businesses to source alternative materials, potentially increasing costs and necessitating new safety protocols.

4. Legal and Reputational Risks

Non-compliance with the updated WHS and workers’ compensation laws can result in significant legal penalties and damage to the organization’s reputation.

 

Worried how these changes will effect your business? Get in touch today: enquiries@helloaxis.com.au