Queensland psychological injury claims double in five years; unions and lawyers warn government may "slash" compensation in response to growth

According to ABC News, the latest annual report from Queensland's state-owned workers' compensation agency WorkCover shows that the previous financial year accepted a total of 4,110 psychological injury claims, a 108% surge from 1,974 in the 2021–22 financial year — more than doubling over five years.

This figure was released as an independent review of WorkCover is underway, expected to be completed in the second half of 2026, with the scope explicitly covering the issue of rising psychological injury claims and the sustainability of the scheme. However, union representatives and workers' compensation lawyers warn that the review's final recommendations may not aim to improve workplace safety, but rather to tighten the eligibility threshold for psychological injury claims.

"We are indeed concerned that the surge in psychological injury claims will give rise to a policy response aimed at restricting access to compensation, rather than truly addressing why workers initially suffer psychological injury," Alison Barrett, principal lawyer at Maurice Blackburn, told ABC News. She noted that psychological injury claims are not unique to Queensland and are also rising nationwide; such claims cover diagnoses including post-traumatic stress disorder, depression, anxiety, and adjustment disorder, and may also originate from psychological trauma arising from physical injury.

Barrett acknowledged that increased public awareness of mental health issues is one factor in the rise in claims, but she stressed this is only a very small factor.

"I think the bigger issue is that there are very real psychosocial risks in the workplace," she said. "We see excessive workloads, workplace violence and aggression, bullying and harassment, and more exposure to trauma."

Jacqueline King, secretary-general of the Queensland Council of Unions, similarly linked the surge in claims to the rise in violent attacks against frontline workers. The main driving sectors she listed include Queensland Health, education, police, corrective services, youth justice and child safety.

"Those frontline workers are being exposed to increasing incidents of violence, excessive workloads and traumatic situations," King said.

WorkCover's data highlights the vast gap in outcomes between the two types of injuries: the return-to-work rate for psychological injury claimants is only 71.4%, while for physical injury claimants it reaches 93.2%; the former's average paid leave is 123 days, nearly three times the latter's 47 days. Total psychological injury payouts last financial year reached A$334 million, with an average cost of A$25,138 per claim.

King warned that if workers are shut out of workers' compensation, they will be forced into the welfare system, or, "if lucky," obtain insurance through their superannuation.

"This just shifts the cost elsewhere," she said.

Barrett called on the government to fundamentally prevent workplace injuries, improve workplace safety and provide early support, rather than "slashing at compensation rights, as has already happened in other states."

A spokesperson for the Office of Industrial Relations (OIR) responded in a statement saying that reducing psychological injury risks is as important as reducing physical injury risks, and that employers bear corresponding responsibilities and possess resources to support workers. The OIR states on its website that the review is expected to be completed in the second half of 2026.