Victoria’s Latest Workers’ Comp Overhaul: What You Need to Know

The Workplace Injury Rehabilitation and Compensation Amendment Act 2025 (Vic) has kicked in, and it’s reshaping how workplace deaths, injuries, and claims are handled in Victoria. Royal Assent was given on 5 August 2025, and most changes apply from 6 August 2025. Here’s the breakdown without the jargon.

Work-Related Death Benefits

Therapy and Supports

• Families can now claim for counselling, therapy, and other support costs—expanded beyond the old limits.

• Forensic cleaning costs (like when a death occurs at home or on-site) are now covered.

• Families can access up to $10,000 for services after a severe injury or diagnosis of an eligible disease, plus another $10,000 if the worker later dies from it.

Provisional Payments

• Weekly pension for a dependent partner increased from 12 to 13 weeks.

• Maximum pension period doubled from 13 to 26 weeks.

• Ban removed on provisional payments in suicide cases.

Compensation for Loss

• Lump sums of up to $20,000 now available for dependants (not parents or kids) suffering economic loss.

• New provision for “close family members” (defined broadly) to receive up to $10,000 for grief and loss.

Children’s Pensions

• From 1 July 2027, weekly pensions for dependent kids will rise to:

  • 12.5% of pre-injury wages per child (up to 4 children).

  • If there are 5 or more kids, they share 50% of wages equally.

Claims Process Overhaul

• The Act’s objectives now include fair and respectful treatment of all claimants and users.

• A new Code of Claimants’ Rights will enforce claimant dignity, fair service standards, and accountability from WorkSafe, self-insurers, and claims agents.

• Independent reviews of the scheme must now be conducted every 5 years.

Return-to-Work (RTW) Coordinators

From 1 July 2027, employer obligations expand:

• RTW Coordinators must complete accredited training.

• Coordinators must be given facilities, resources, and time to do the job properly.

• Small employers get lighter obligations, but big employers face penalties for non-compliance.

• Corporate officers can face criminal liability if they ignore due diligence.

Administrative Tweaks

Workplace Injury Commission (WIC):

• Can now certify and enforce arbitration agreements.

• Can share info with workers once disputes end.

Hearing Loss Assessors:

• No longer restricted to Minister-approved appointees—any qualified medical practitioner can now assess hearing loss under the scheme.

WorkSafe Victoria Executive:

• Board powers clarified: directors resign to the Minister, not the Governor.

• Advisory Committees expanded by two members.

• Board now appoints the CEO (with Minister approval), rather than the Governor.

Why This Matters

This isn’t just tinkering at the edges. These amendments expand family supports, double provisional pensions, and lock in stronger claimant rights. Employers will feel the pinch too—particularly with new return-to-work obligations and potential criminal liability for non-compliance.

For workers and families, the system should be fairer, more compassionate, and less bureaucratic. For employers, the days of skating by on bare-minimum compliance just got a lot riskier.