WA’s Modernised Workers Compensation and Injury Managements Acts

The Workers Compensation and Injury Management Act 2023 introduces significant changes for WA employers

• New timelines and compliance requirements increase the importance of effective claims management
• Delays or poor processes may result in higher claim costs and penalties
• RP helps WA businesses manage workplace injuries, claims, and return-to-work processes

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The WA Workers Compensation and Injury Management Act Will Impact Your Business

On 1 July 2024, the Workers Compensation and Injury Management Act 2023 came into effect in Western Australia.

The legislation represents one of the most significant updates to workers compensation laws in decades. For employers, these changes introduce new compliance requirements, stricter timeframes, and potential increases in claims costs.

For many businesses across manufacturing, logistics, and industrial sectors, understanding how these changes affect workplace operations is essential.

The reality is that workers compensation claims already carry significant operational and financial consequences. Under the new legislation, effective claims management, documentation, and injury management practices will become even more important.

Key Legislative Changes Employers Should Understand

While the full regulations are still evolving, several major changes under the new Act will directly impact how employers manage workplace injuries and compensation claims.

Faster Claim Response Requirements

Employers now have seven calendar days to provide a worker’s claim form and medical certificate to their insurer.

This is a change from the previous five business days.

Failure to meet this timeframe can result in penalties of up to $5,000, significantly higher than previous fines.

Once the claim is received, insurers must respond quickly:

• A liability decision must be issued within 14 days
• A deferred decision notice must also be issued within 14 days if further investigation is required
• Provisional payments may apply if a final decision is not made within 28 days

For employers, this means internal reporting and investigation processes must be faster and more structured than ever before.

Provisional Payments for Deferred Claims

If an insurer defers their decision while investigating a claim, provisional payments must begin after 28 days if liability has not yet been accepted or declined.

These payments may include:

• Medical and health expenses from the date of injury
• Income compensation from the date the worker becomes incapacitated

This change increases the importance of early investigation and accurate reporting to ensure claims are properly assessed before the 28-day threshold.

Deemed Liability Provisions

Under the new legislation, if the insurer does not provide a response within 14 days, liability may be considered accepted.

This introduces greater urgency into the claims management process and places pressure on both employers and insurers to ensure complete documentation and timely communication.

Changes to Psychological Injury Claims

The new Act introduces clearer provisions around psychological and stress-related claims.

Psychological injuries resulting from reasonable formal administrative actions, such as performance management or disciplinary processes, may be excluded.

However, this exclusion does not apply if the action is deemed harsh or unreasonable, or if the injury arises from other workplace conduct such as bullying.

For employers, this reinforces the importance of well-documented HR processes and structured management practices.

Increased Medical Expense Caps

The cap for medical and health expense compensation has increased significantly.

Previously capped at 30% of the general maximum amount, the new limit increases to 60%, effectively doubling the potential amount payable.

WorkCover WA estimates these changes could increase average premium rates by around 1%, with further increases possible depending on claims experience.

For businesses, this reinforces the importance of preventing injuries and managing claims effectively when they occur.

Why Injury Management Is More Important Than Ever

With increased costs and stricter compliance requirements under the new legislation, proactive injury management is critical.

Employers should focus on:

• Strengthening workplace safety systems
• Improving incident reporting procedures
• Conducting fast and thorough claim investigations
• Supporting injured workers with suitable duties and return-to-work planning
• Ensuring line managers understand their responsibilities under the legislation

From an operational perspective, early intervention is one of the most effective ways to prevent claims from escalating.

When injuries are managed quickly, employees remain engaged in the workplace and recovery outcomes are often significantly better.

Preparing Your Business for the New Legislation

Many employers are now reviewing their internal policies and procedures to ensure compliance with the updated Act.

Key steps include:

• Reviewing injury reporting and claims management procedures
• Ensuring documentation is thorough and well maintained
• Training supervisors on injury management responsibilities
• Strengthening workplace health and safety systems
• Implementing clear return-to-work processes

For organisations with larger operational teams, these changes can have a significant impact on how workplace injuries are managed.

How IRP Supports Employers Managing Workers Compensation

At Industrial Recruitment Partners (IRP), we understand the operational impact workplace injuries and workers compensation claims can have on businesses.

Through our experience supporting industrial teams across Western Australia, we know how quickly claims can escalate if they are not managed early and effectively. That’s why our approach focuses on prevention, early intervention, and practical claims management support.

We help businesses with:

• Workplace safety system reviews and practical improvement recommendations
• Audits of incident reporting and injury management procedures
• Guidance on workers compensation claims management
• Coordination with insurers, brokers, and rehabilitation providers
• Hands-on support managing workplace injury claims

With the introduction of the Workers Compensation and Injury Management Act 2023, strong injury management systems, clear documentation, and early return-to-work planning will be more important than ever.

From our experience working with WA businesses, organisations that invest in prevention and structured claims management are far better positioned to control claim costs and maintain workforce stability.

Whether you need to strengthen your team, solve a workforce challenge, or plan ahead for demand, the first step is simple — we come to you.
Call us on (08) 9477 7999 or arrange a site visit today.

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