The Landscape for Psychosocial Risk Regulation and Enforcement in NSW has Just Shifted

The landscape for psychosocial risk regulation and enforcement in NSW has just shifted, with tight deadlines and new compliance responsibilities looming for PCBUs.

The Work Health and Safety Regulation 2025 came into force on 22 Aug 25, replacing the 2017 regulation and carrying forward most of the existing framework with key NSW‑specific changes. One of the most significant of these is a strengthened duty to manage psychosocial risks in the workplace in line with the hierarchy of control measures. This is now explicitly required under regulation 55C, bringing NSW ahead of the model WHS Regulation approach. It also introduces new compliance and enforcement tools, such as penalty notice offences.

SafeWork NSW’s Annual Regulatory Statement for 2025–26, published 01 Jul 25, signals a regulatory shift: psychosocial hazards and compliance are among the priority areas for enforcement this year. The Statement outlines how SafeWork NSW intends to focus its resources where they will have the most impact and emphasises stronger oversight of psychosocial risk management, including sexual harassment, workplace violence, and stress.

The Managing psychosocial hazards at work Code of Practice (May 2021) remains the cornerstone for practical guidance. It sets out how PCBUs should identify and manage psychosocial hazards through systematic risk management processes that align decision-making with the WHS duties. While currently advisory, changes to the wider WHS law mean this Code is moving toward being treated as a default compliance benchmark.

There are also new reporting obligations. As a result of broader legislative reform, SafeWork NSW is required to prepare six‑monthly reports on psychosocial matters, with the provisions that trigger these reports commencing on 01 Mar 26. These reports will need to include data on complaints, notices, and psychosocial compliance trends across sectors.

Overall, these changes show that SafeWork NSW is intentionally increasing its ability to address and enforce rules on psychosocial risks, making it more important for duty holders to be prepared to report and face regulatory action as 2026 approaches.