WHS and OHS Regulatory Update: July 2025

In Short

• New independent WHS regulator in NSW: From 1 July, SafeWork NSW operates independently with 50 new inspectors, 25 of whom will focus on psychosocial hazards.

• Codes of practice legally binding: Under upcoming law changes, employers will be required to follow approved Codes or demonstrate equal or better safety standards, increasing compliance obligations.

• Expanded WHS powers and obligations: Upcoming new laws introduce mandatory notifications, longer prosecution windows, greater union access, and direct access to the Commission for dispute resolution.

Tips for Businesses
Stay on top of WHS changes by reviewing your policies and procedures—especially around psychosocial risks. Ensure your team understands the new obligations, including mandatory notifications and binding codes of practice. Engage meaningfully with workers during change processes to help manage risk and meet your legal duties.

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Table of Contents

• Legislative Updates
• Cases and Incidents
• Questions?

Workplace health and safety officers have an ongoing responsibility to ensure their organisations remain compliant while maintaining current and relevant knowledge of WHS matters. This article highlights key developments to support you in meeting these obligations.

Legislative Updates

From 1 July 2025, SafeWork NSW has been formally established as an independent regulator under the Work Health and Safety Amendment (Standalone Regulator) Act 2025. This change enhances SafeWork NSW’s independence and accountability and likely signals an increase in enforcement activity. 

This has also occurred in tandem with SafeWork NSW’s commitment to hire 50 new inspectors across the state, with 25 of these being dedicated to focusing on psychosocial hazards in workplaces. 

Key Changes Under the Bill

Key changes under the bill include: 

• PCBUs will need to notify SafeWork NSW immediately when health and safety representatives issue provisional improvement notices. Failure to do so can result in a penalty of up to 50 penalty units.
• Codes of Practice approved by the Minister for Industrial Relations and the Minister for Work Health and Safety will become legally enforceable for Persons Conducting a Business or Undertaking (PCBUs). PCBUs must comply with these codes unless they can demonstrate that alternative safety measures meet or exceed the prescribed standards. This change aligns New South Wales with Queensland’s stricter compliance requirements.
• Union officials will be granted expanded powers to gather evidence related to suspected violations of the NSW Work Health and Safety Act. These powers include:
  • Conducting tests.
  • Taking measurements, photos, and videos to document suspected breaches of the Act.
• Disputes involving Work Health and Safety (WHS) matters will be directly brought to the Industrial Relations Commission by PCBUs, workers, and health and safety representatives (HSRs) without the involvement of SafeWork NSW inspectors. WHS matters may include:
  • Work group determinations.
  • Requests from HSRs regarding access to information and training.
  • Health-related issues, including the cessation of work.
• New South Wales courts will be able to extend prosecutions beyond the usual two-year time limit if they believe it serves the ‘interests of justice.’ This rule was created to handle ‘workplace exposure diseases’ where health problems from workplace exposure can take years to show up, but the term is not clearly defined. This means courts might extend the time limit in other types of cases, too.

New Code of Practice 

SafeWork Australia has published a new model code of practice for the healthcare and social assistance industry. 

Healthcare and social assistance workers have the highest number of work-related injuries of any industry in Australia, and a workers’ compensation claim rate of more than twice that of the national average. This model of practice focuses on hospitals, aged care and disability support, and includes in home-based settings. 

Direct Line to the Industrial Relations Commission

PCBUs, workers, health and safety representatives (HSR) will be able take disputes relating to a WHS matter directly to the Industrial Relations Commission. This means that there is no need for involvement from a SafeWork NSW inspector.

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Cases and Incidents

An emphasis on the effect of psychosocial hazards is evident in SafeWork NSW’s investigation into the University of Technology Sydney (UTS) due to potential breaches of the WHS Act resulting from the redundancy process.

What Happened?

UTS is implementing a major restructure called the “Operational Sustainability Initiative” that may result in up to 400 job cuts. 

Following an anonymous complaint alleging “wilful and negligent mismanagement”, SafeWork NSW issued UTS a formal notice under the WHS Act. UTS was required to investigate how the university identified and managed psychosocial risks resulting from the restructuring process. A leaked survey by the National Tertiary Education Union found that 35% of 380 UTS staff were experiencing very high levels of psychological distress, with 60% of academic staff unable to complete their workloads during paid hours.

Staff report a climate of fear, with employees afraid to speak openly about the situation and relying on private WhatsApp groups for communication. The union claims there has been inadequate consultation with staff throughout the process.

Key Takeaways

Some key insights for employers are: 

• Restructures Trigger WHS Obligations: Major organisational changes, such as restructures and redundancies, are considered foreseeable psychosocial hazards under WHS law.

• Proactive Risk Assessment Requirement: Employers must assess and control psychological risks before incidents occur. Additionally, regulatory action can follow even without formal incidents. 
• SafeWork NSW Expanding Focus: The regulator is increasingly targeting white-collar and knowledge-sector employers for psychosocial risk management.

• Meaningful Consultation is Essential: Failure to adequately consult staff during major changes can lead to regulatory investigations. 

Questions?

If you need legal assistance with a WHS matter or need help identifying an officer, book a consultation call on Prism. As a member, you can request unlimited legal advice consultations.