The State Insurance Regulatory Authority (SIRA) has used its latest Recovery at work insider bulletin to restate how employer practices, early intervention, and person-centred support are influencing workers compensation outcomes across New South Wales.
The December edition of the monthly publication – directed at employers, workplace rehabilitation providers, and other return-to-work stakeholders – reviews the main themes from 2025 and sets out expectations for 2026. SIRA identifies several operational elements it regards as central to recovery and return-to-work (RTW):
The bulletin reiterates that employers must notify their workers compensation insurer of an injury within 48 hours of becoming aware of it and that they have a legal obligation to provide suitable work unless they can demonstrate it is not reasonably practicable. RTW programs are described as a way for workers to understand what is likely to happen after an injury, which parties are involved, and how decisions about duties, adjustments, and support will be made.
SIRA also underscores the role of RTW coordinators as a contact point linking injured workers with the employer, treating practitioners, and rehabilitation providers. Coordinators are expected to have relevant training, skills, and experience, and workers should be informed who holds this role and how to reach them. The insider references SIRA’s recent evaluation of workplace rehabilitation services, which found that early and tailored engagement with workplace rehabilitation providers is associated with more durable RTW outcomes. SIRA links this finding to its own funded programs, including those that focus on psychological injury, which are structured to provide additional support where recovery may be complex or extended.
The Recovery at work insider draws on scheme data to explain SIRA’s emphasis on early reporting, suitable duties, and worker engagement in the claims process. According to SIRA, scheme evidence indicates that early notification of injuries and early allocation of suitable work are associated with faster recovery and a lower risk of long-term separation from employment. Psychological injuries are identified as a particular area of concern. SIRA reports that these injuries account for around 7% of new claims but 26% of workers who are not back at work after 13 weeks, suggesting that psychological claims make up a relatively large share of longer-duration cases. The bulletin notes that workers who feel supported and involved in decisions about their claims and recovery are more likely to return to work earlier. It also reports that 76% of workers who engaged with a workplace rehabilitation provider achieved a durable RTW outcome.
In this context, SIRA is encouraging employers in 2026 to:
The regulator presents these steps as part of a broader shift within the system toward more person-centred claims management, with greater emphasis on communication, individual recovery goals, and continuity of support across parties involved in a claim.
While the Recovery at work insider concentrates on operational practice at employer and claims level, SIRA’s 2024-25 annual report sets out how these priorities sit within its wider regulatory strategy. The report covers the NSW workers compensation, compulsory third party (CTP), and home building compensation schemes, which together provide cover to more than 10 million people in the state. In 2024-25, SIRA concluded its SIRA 2025 strategy and began implementing SIRA 2028, a three-year plan that describes the regulator as customer-centred, intelligence-led, and risk-based. The strategy outlines how SIRA intends to align scheme supervision, customer interactions, and digital capability with the changing needs of injured people, employers, insurers, and other participants.
The report notes more than 15,000 customer interactions through SIRA support channels and $90.5 million recovered via the Transitional Excess Profits and Losses mechanism, bringing total recoveries under that mechanism to $543 million in support of CTP price settings. SIRA also reports investing $5.215 million in vocational programs, supporting recovery for more than 102,000 workers with an injury, and reviewing 1,797 building projects under the home building compensation scheme. SIRA states that website and digital pathway changes now serve more than 1 million customers annually. For insurers, intermediaries, and service providers, this reflects increasing use of online channels for regulatory guidance, dispute information, and scheme processes.
From 2026, SIRA’s regulatory work will take place within an updated legislative framework for workers compensation in NSW. A reform package agreed between the government, crossbench MPs, business organisations, and community and not-for-profit groups is designed, according to the government, to moderate premium increases and adjust RTW supports. The compromise, based on proposals from Lower House crossbench members, includes a legislated 18‑month restriction on average premium increases and retention of revised Whole Person Impairment (WPI) thresholds. A new “Return to Work” intensive program will provide an additional year of medical benefits and income replacement for eligible workers, and the Treasurer will gain the power to lower the WPI threshold if considered to be in the public interest.
The package also provides for a replacement program for Business Connect and changes terminology around the reasonable management action defence. Government statements indicate that, without these measures, average premiums for employers with no claims were forecast to increase by at least 36% over three years. The agreement is expected to enable passage of the Workers Compensation Legislation Amendment (Reform and Modernisation) Bill 2025 in the Upper House in February. Once in place, these legislative settings will apply to how SIRA exercises its risk-based oversight and implements recovery-at-work expectations.
