What Is Psychological Injury Compensation in Australia?
Psychological injury compensation refers to financial and treatment support provided to workers who experience a mental health condition because of their work. This support exists under state and territory workers’ compensation schemes across Australia, including Victoria’s WorkCover system.
Eligibility for Psychological Injury Compensation
Safe Work Australia explains that workers’ compensation can cover psychological conditions such as PTSD, anxiety, depression and other mental injuries when:
the person meets the definition of a worker, and
work is a significant contributing factor to the injury.
In Victoria, to be compensable under the WorkCover scheme, a mental injury must:
cause significant behavioural, cognitive, or psychological dysfunction, and
be diagnosed by a medical practitioner using the DSM criteria.
What Compensation Can Cover
If a psychological injury is accepted, you may be entitled to:
Medical and treatment expenses (e.g., GP, psychiatrist, psychologist)
Weekly income support while unable to work
Rehabilitation and support services
Lump sum compensation for permanent impairment (if applicable)
Early Support with Provisional Payments
In Victoria, provisional payments can cover early treatment costs (including psychology services) while your claim is assessed — even before the claim is accepted.
Legal and Clinical Requirements
Psychological compensation isn’t automatic — it depends on medical evidence and work contribution. A medical practitioner’s evidence that your condition meets the legal requirements is central to entitlement.
🔗 Read more about workers’ compensation and psychological injuries at Safe Work Australia: https://www.safeworkaustralia.gov.au/workers-compensation/workers-compensation-psychological-injuries
FAQ – Psychological Injury Compensation
Q: Can I claim for anxiety from workload pressure?
A: Only if it leads to significant dysfunction and work is a predominant cause.
Q: Does compensation pay for therapy?
A: WorkCover can pay for treatment that’s medically justified.
Q: What if my claim is rejected?
A: You may be eligible for transitional support or dispute options through WorkSafe.
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.
