Psychological Injury vs Mental Injury with WorkSafe Victoria

When navigating workers’ compensation in Victoria, terms like psychological injury and mental injury can be confusing. Knowing what they mean and how they’re used is important for claims and recovery.

What Do These Terms Mean?

Under Victorian workers’ compensation law:

• Mental Injury is a legal term used in the Workplace Injury Rehabilitation and Compensation Act to determine eligibility for compensation. To be compensable, a mental injury must:

  • cause significant behavioural, cognitive or psychological dysfunction, and

  • be diagnosed by a medical practitioner in accordance with the Diagnostic and Statistical Manual of Mental Disorders (DSM).

This definition sets a threshold, and ordinary stress, burnout, or short-term distress does not automatically qualify.

In contrast, psychological injury is a broader term often used by clinicians to describe symptoms such as anxiety, depression, PTSD, adjustment difficulties, or other psychological conditions. While these may be part of a compensable mental injury, the legal test focuses on dysfunction and formal diagnosis.

Why Does This Difference Matter?

Many people use “psychological injury” to describe their experience, but for WorkCover compensation, the law defines a mental injury specific to eligibility. That means:

• You may have significant emotional distress or psychological symptoms, but compensation depends on the legal criteria.

• A clinical psychologist can treat and diagnose psychological problems, but for WorkCover purposes, a medical practitioner (GP or psychiatrist) diagnosis aligned with DSM criteria is required.

Work-Related Cause

For both psychological and mental injuries to be compensable, the injury must predominantly arise out of or in the course of employment — that is, work must be the strongest contributing cause.

However, if an injury is the result of reasonable management action taken in a reasonable way (e.g., performance management that is fair and normal), it is generally not compensable.

Practical Example

You develop anxiety because of chronic workplace conflict that was unreasonable or harassment — these symptoms may be part of a psychological injury and, if they meet legal criteria, may be a mental injury under WorkCover.

Key Points

• Psychological injury describes a range of mental health conditions.

• Mental injury is the formal, legally defined injury for WorkCover eligibility.

• A valid medical diagnosis and significant dysfunction are required for compensation.

🔗 Learn more about mental injury eligibility: https://www.worksafe.vic.gov.au/practice-directive-mental-injury-eligibility

FAQ – Psychological Injury vs Mental Injury

Q: Can a psychologist diagnose a WorkCover mental injury?
A: For WorkCover purposes, only a medical practitioner diagnosis using DSM criteria counts.

Q: Is stress always compensable?
A: No — stress or burnout from typical workplace events usually does not qualify unless linked to traumatic or unusual circumstances.

Q: What’s required for mental injury compensation?
A: A DSM diagnosis, significant dysfunction, and work being the predominant cause.

Disclaimer
The information on this website is for general informational purposes only and should not be relied upon as professional advice. It is not a substitute for personalised medical, psychological, legal, or workplace advice. Laws, policies, and eligibility criteria may change and vary between individuals. We encourage readers to seek official guidance from relevant authorities (such as WorkSafe Victoria or Safe Work Australia) and support from qualified professionals before making decisions based on this information.