SafeWork NSW has published its Psychological Health and Safety Strategy 2024-2026, backed by $5.6 million in government funding for workplace mental health programmes. The strategy outlines how the regulator will reduce work-related psychological injuries through a combination of capability building and compliance enforcement.

This is not a guidance document. It is an enforcement plan. NSW is now the most enforcement-forward jurisdiction in Australia on psychosocial compliance.

From awareness to enforcement

The strategy marks a deliberate shift. The previous NSW Mentally Healthy Workplaces Strategy 2018-2022 focused on awareness and capability building. Over four years, SafeWork NSW trained over 25,000 individuals in workplace mental health and coached 568 businesses. By 2022, over 92,000 NSW businesses were taking effective action on mental health.

Despite this progress, the strategy document notes that psychological claims in NSW rose 30% between the 2018-19 and 2022-23 financial years, compared with 11% for physical claims. The average cost and time off work for psychological injuries is more than triple that of physical claims.

The 2024-2026 strategy is the regulator's response: the awareness phase is over. Organisations have had access to the Code of Practice: Managing Psychosocial Hazards at Work since May 2021 and the amended WHS Regulations since October 2022. SafeWork NSW now expects compliance.

Specific enforcement commitments

The strategy sets the following targets for delivery by 2026.

Compulsory psychosocial WHS checks for 200+ worker organisations. SafeWork NSW will complete a psychosocial WHS check during all inspector visits to organisations with 200 or more workers. This is not a random sample. Every inspector visit to a large organisation or government agency will include a psychosocial component.

A 25% increase in inspector compliance visits. SafeWork NSW will increase planned inspector compliance visits by 25% per year between 2023 and 2026. This increase is targeted at high-risk workplaces and large businesses and government agencies that are not meeting their WHS duties.

Sustained compliance as a target. 80% of workplaces revisited after six months must sustain their compliance improvements. This means SafeWork NSW is not just conducting initial visits — the regulator is returning to verify that corrective actions have been maintained.

Reporting on psychosocial regulatory action. The strategy includes a monitoring, evaluation and reporting framework that tracks psychosocial complaints, notices issued and enforcement actions taken. This data will be reported to the Minister for Work Health and Safety, creating a direct line of accountability from the inspectorate to the government.

Acting Deputy Secretary SafeWork NSW Trent Curtin stated in the strategy announcement: "Large businesses and government agencies at high-risk of psychological injuries can expect compliance checks from SafeWork NSW." He confirmed that SafeWork NSW will issue improvement notices, prohibition notices or formal regulator warnings, and may prosecute workplaces that repeatedly do not comply or where they have seriously breached WHS laws.

What a psychosocial WHS check involves

While SafeWork NSW has not published a formal checklist for what inspectors assess during a psychosocial WHS check, the Code of Practice: Managing Psychosocial Hazards at Work and the WHS Regulation define what compliance looks like. Based on the regulatory framework, inspectors can be expected to assess whether an organisation has completed the following.

Hazard identification. Has the organisation identified the psychosocial hazards present in its workplace, in consultation with workers? Inspectors will look for evidence of a systematic identification process, not a one-off exercise completed and filed.

Risk assessment. Has the organisation assessed the risks arising from the identified hazards, including the duration, frequency and severity of exposure, how hazards interact, and the adequacy of existing controls?

Control measures. Has the organisation implemented control measures to eliminate or minimise identified risks so far as is reasonably practicable? Inspectors will assess whether the controls address work design, systems of work and the physical environment, rather than relying solely on training or policies.

Review. Has the organisation reviewed its control measures to ensure they remain effective? Inspectors will look for evidence of ongoing review, particularly following workplace changes, incidents or complaints.

Consultation. Has the organisation consulted workers and health and safety representatives at each step of this process? Evidence of genuine consultation, not just notification, is a key indicator.

Documentation. Can the organisation produce structured evidence of each step? An inspector will expect to see records of hazard identification, risk assessments, implemented controls and their review. Organisations that cannot produce this evidence during a visit are exposed.

What this signals

NSW was the first jurisdiction to adopt the Code of Practice on Managing Psychosocial Hazards at Work in May 2021 and the first to adopt the amended model WHS Regulations in October 2022. The 2024-2026 strategy confirms that NSW is now leading on enforcement as well.

The strategy explicitly states that while SafeWork NSW will continue to raise awareness and build capability, it will be "increasingly taking action against high-risk and large businesses and government agencies who are not meeting their legal WHS duties." The combination of compulsory psychosocial checks for large organisations, a significant increase in inspector visits, and sustained compliance monitoring positions NSW as the jurisdiction where regulators are most actively testing whether organisations can demonstrate a working psychosocial risk management process.

For organisations operating in NSW, the practical question is straightforward: if an inspector visited tomorrow and asked to see your psychosocial hazard register, your risk assessments, your control measures and your consultation records, could you produce them?

Disclaimer: This article provides general information on psychosocial compliance in Australian workplaces. It does not constitute legal advice. Organisations should consult qualified professionals for advice specific to their circumstances. Regulatory references are sourced from SafeWork NSW and the NSW Government and are current as of the date of publication.