Workers Compensation

Your Complete Guide to Workers Compensation in NSW

By LHD Lawyers

If you’ve suffered a work-related injury or illness in New South Wales, you may be entitled to workers compensation — covering medical expenses, lost income, rehabilitation costs and more. At LHD Lawyers, we specialise in helping injured workers navigate the claims process and access the benefits they deserve.

From falls on job sites to psychological injuries from bullying or unsafe workloads, we’re here to help you understand your rights, manage your claim, and secure your future.

And in NSW, your claim won’t cost you anything. Your legal fees are covered by either the Independent Review Office (IRO) or the workers compensation insurer — so you won’t pay us a cent to start your claim.

In this guide

What is workers compensation in NSW?
Workers compensation legislation
NSW workers compensation guidelines
Who is eligible to make a claim?
How the claims process works
What you can claim
Time limits and age rules
Superannuation and compensation payments
Working, resigning or being made redundant
NSW workers compensation payouts
How LHD can help

What is workers compensation in NSW?

Workers compensation is a type of insurance that supports people who are injured at work or become unwell because of their job. It can include weekly payments to cover lost income, medical treatment, rehabilitation, and a lump sum payment for permanent impairment.

Injuries covered can be physical (e.g. back injuries, fractures) or psychological (e.g. PTSD, anxiety caused by workplace trauma or bullying). The scheme is governed by the State Insurance Regulatory Authority (SIRA) and applies to most employers and workers in NSW.

Workers compensation legislation in NSW

NSW workers compensation is governed by several Acts and Regulations:

Workers Compensation Act 1987 – establishes liability for employers and entitlements for injured workers
Workplace Injury Management and Workers Compensation Act 1998 – promotes early treatment, return to work and coordination of care
Workers Compensation (Dust Diseases) Act 1942 – covers compensation for illnesses caused by hazardous dust (e.g. asbestosis, silicosis)
Workers Compensation (Bush Fire, Emergency and Rescue Services) Act 1987 – provides special cover for emergency service workers

Accompanying regulations provide rules on costs, claims, disease schedules, and return to work For more detailed information on NSW workers compensation legislation, visit the State Insurance Regulatory Authority (SIRA).

NSW Workers compensation guidelines

SIRA publishes workers compensation guidelines to help workers, employers, insurers, and doctors manage claims. These cover:

Injury notification and provisional liability
Claim lodgement and insurer responsibilities
Medical expenses, treatment and rehab
Independent Medical Examinations (IMEs)
Work capacity assessments
Lump sum compensation and commutation

For full detail, see the SIRA Guidelines.

Who is eligible to make a claim?

You may be eligible if:

You were injured at work or because of work
The injury happened while travelling for work
Your job aggravated a pre-existing condition
You suffer a psychological condition due to work stress, bullying or trauma

How does the claims process work in NSW?

Get medical treatment and ask your doctor for a WorkCover certificate
Notify your employer of the injury as soon as possible
Lodge a claim through the insurer or get help from a workers compensation lawyer
Insurer determines provisional liability (within 7 days)
Weekly payments and medical support may begin under provisional acceptance
The insurer investigates and determines your full claim
If necessary, LHD Lawyers will escalate the matter to the Workers Compensation Commission for resolution

You can also contact LHD to assist with completing the form and collecting required evidence.

What Can I Claim on Workers Compensation?

While the amount and length of time you’ll be paid varies based on your personal circumstances, you may be eligible to claim:

Period of time	Percentage of pre-injury income
First 13 weeks	Up to 95% of pre-injury earnings
14 to 130 weeks	Up to 80%
131 to 230 weeks	Up to 80% (with a Work Capacity Assessment to confirm inability to return to work)
5 years or more	Up to 80% (Only payable to people with a whole person impairment greater than 20%)

From 1 April 2025 to 30 September 2025, the maximum weekly compensation amount you can be paid in NSW is $2,569.60.

The compensation payout you’ll receive is typically determined by three key factors:

An expert medical assessment of the extent of your injuries
The amount of lost earnings due to not being able to work
The extent to which future earnings are potentially impacted

You may also be able to claim for:

Medical, hospital and rehabilitation expenses
Return to work assistance
Home or vehicle modifications
Permanent impairment lump sum
Work Injury Damages payout if negligence is proven

Time limits and age rules

Claims should be made as soon as possible after injury. Generally, within 6 months.
Weekly payments usually stop at retirement age + 1 year
If you’re over retirement age when injured, you may receive up to 12 months of weekly payments

Is superannuation paid while on workers compensation?

Super is generally not payable unless:

Your Modern Award or Enterprise Agreement states otherwise
You’re doing partial work and being paid wages

Can I work, resign or be made redundant?

Returning to work: Returning is encouraged. Your employer should provide suitable duties if you can’t return to your previous role.

Resigning: You can resign while on workers compensation, but your entitlements may be affected. Always seek legal advice.

Dismissal or redundancy:

You can’t be dismissed within 6 months of injury solely due to incapacity
If made redundant, you still receive workers comp entitlements

NSW Workers Compensation Payouts

Compensation amounts depend on the severity of injury, income lost, and long-term impact.

Example payout: A warehouse worker suffered a back injury lifting a heavy load. After surgery and time off work, LHD Lawyers helped secure a $420,000 payout for lost income, future needs, and medical costs — all with no upfront legal fees.

See more: Workers Compensation Payout Case Studies

Why choose LHD Lawyers?

We specialise in complex and serious work injury claims
You’ll speak with the same lawyer throughout the entire process
Our Client Care Team supports you every step of the way
We cut the jargon and talk in plain language
No Win, No Fee: In NSW, your legal fees are covered by IRO or the insurer

Make a Workers Compensation claim today

If you think you have a workers compensation claim in NSW, LHD Lawyers can help everyday Australians receive the benefits they’re entitled to. Get in touch with us today for a no obligation chat,
call 1800 455 725 or check your claim online.

Find out more about our offices in Sydney, Coffs Harbour, Dubbo, Erina, Maitland, Newcastle, Port Macquarie, Taree and Tamworth.

Written By Jamie Nemme