NSW employers may soon face fines of up to nearly $100,000 per breach for workplace bullying and other psychosocial harms, under new SafeWork reforms aimed at strengthening mental health protections in the workplace. The reforms include deploying specialised inspectors and investing heavily in enforcement to ensure compliance.
Key Details of the SafeWork Reforms
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Legislation:
- The Work Health and Safety Amendment (Workplace Bullying) Bill 2026 was introduced in March 2026.
- It passed its first reading and is currently under parliamentary committee review.
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Fines:
- Employers could be fined up to $99,432 per breach of workplace bullying laws.
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Investment:
- The NSW Government is investing $127.7 million over four years into SafeWork NSW.
- This includes hiring 51 new inspectors, with 20 dedicated psychosocial inspectors.
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Focus Areas:
- Bullying and harassment
- Excessive workloads
- Exposure to traumatic events
- Other psychosocial risks affecting mental health
Why This Matters
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For Employers:
- Stronger accountability and financial penalties mean organisations must proactively address workplace culture and mental health risks.
- Compliance will require updated policies, training, and monitoring systems.
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For Employees:
- Workers gain stronger protections against bullying and harassment.
- SafeWork inspectors will have authority to issue on-the-spot fines for breaches.
Comparison: Current vs Proposed Framework
| Aspect | Current Framework | Proposed Reforms |
|---|---|---|
| Enforcement | Limited inspector capacity | 51 new inspectors, 20 psychosocial specialists |
| Penalties | General WHS penalties | Up to $99,432 per bullying breach |
| Focus Areas | Physical safety emphasis | Expanded to psychosocial harms (bullying, trauma, workload) |
| Government Investment | Lower funding | $127.7M over 4 years |
Risks & Challenges
- Employer Burden: Smaller businesses may struggle with compliance costs.
- Cultural Change: Policies alone won’t suffice; leadership and workplace culture must shift.
- Legal Complexity: Employers will need clear guidance to avoid disputes over what constitutes “bullying” or “psychosocial harm.”
The NSW reforms mark a significant shift toward prioritising mental health in workplace safety law. Employers should begin preparing by reviewing policies, conducting psychosocial risk assessments, and training staff to prevent bullying and harassment. Employees, meanwhile, can expect stronger protections and more responsive enforcement mechanisms.
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