Starting 1 December 2025, Victorian employers will be legally required to manage psychosocial hazards with the same diligence as physical risks. This marks a major shift in how workplace safety is regulated and understood.

According to the ABS National Study of Mental Health and Wellbeing (2020–2022):

• 42.9% of people aged 16–85 years had experienced a mental disorder at some time in their life

For years, physical safety has been the focus of workplace health and safety efforts. But the evidence is clear: psychological health is just as important, and often more damaging when neglected.

The Data Speaks for Itself

A recent report from Safe Work Australia further highlights the impact:

• Workers with mental health condition claims have a lower return-to-work rate (79.1%) compared to all injuries (91.6%).
• The median time lost for mental health claims is over four times greater than for physical injuries.
• The median compensation paid is more than three times higher.
• Workers with mental health claims have been more likely to experience stigma from colleagues and employers – we need to turn this around!

These figures show the real cost (both human and financial) of ignoring psychological safety.

Why Psychological Health Matters

Psychological health affects how we think, feel, and act. Hazards like bullying, harassment, poor support, and high job demands can lead to serious outcomes ranging from stress and fatigue to anxiety, depression, and PTSD.

Unlike physical injuries, psychological harm can be less visible but more enduring, impacting not just individuals but entire teams and workplace culture.

A Call to Action

The new regulations are a wake-up call. Employers and Leaders must now ask:

Is our workplace psychologically safe?

Creating a psychologically healthy workplace means:

• Listening to employees
• Identifying and managing psychosocial risks
• Prioritising prevention over reaction
• Embedding psychological safety into everyday operations

Because when we protect psychological health, we don’t just reduce harm, we build happier and healthier workplaces.

For more information on how to assess your workplace and protect your employees, visit WorkSafe Victoria https://www.worksafe.vic.gov.au/psychological-health

References:

• ABS, released 05/10/2023, reference period 2020-2022
• https://www.abs.gov.au/statistics/health/mental-health/national-study-mental-health-and-wellbeing/l…
• Safe Work Australia Feb 2024, reference period 2017-2022
• https://data.safeworkaustralia.gov.au/snapshot/psychological-health-and-safety-workplace