Changes to the NSW workers compensation system mean that compensation benefits will now be indexed less frequently than in previous years. From 1 July 2026, workers compensation entitlements are subject to a single annual indexation adjustment, with the first annual increase scheduled for 1 April 2027.

Indexation plays an important role in protecting the value of compensation benefits by helping them keep pace with inflation and wage growth. For injured workers relying on weekly payments, these adjustments can make a meaningful difference over time.

The changes do not remove indexation altogether. Rather, they change the timing of when increases occur. As a result, injured workers should no longer expect multiple adjustments throughout the year and should instead monitor annual increases when they fall due.

If you are currently receiving workers compensation benefits, it is important to review your payment records and insurer correspondence to ensure any applicable indexation has been correctly applied. If you have concerns about whether your payments have been properly calculated, it may be worthwhile obtaining advice about your entitlements.

It is also important to remember that workers compensation claims and CTP claims operate under different legislative schemes. While workers compensation benefits are now generally subject to annual indexation arrangements, statutory benefits payable under the NSW motor accidents scheme are indexed separately and may be adjusted at different times.

Need Advice?

Understanding workers compensation entitlements can be challenging, particularly when legislative changes occur. If you are unsure whether your benefits are being calculated correctly, the team at Don Cameron & Associates can review your claim and provide advice regarding your entitlements.

This article is general information only and does not constitute legal advice. Individual circumstances vary and legal advice should be obtained for your specific situation.