Yes – if you’re dealing with a work-related mental health condition in Queensland, you may be entitled to workers’ compensation for psychological injury, such as depression and PTSD. And you wouldn’t be alone.
But it’s not always straightforward – psychological injury claims can be complex, and the laws around them are constantly changing. Unlike physical injuries, mental health conditions aren’t always visible, which means proving your case and getting the compensation that you deserve can be tougher than you think. That’s why having the best compensation law firm on your side is critical.
In this article we’ll explain your rights, what qualifies as a psychological injury, how much compensation you could receive – and why early legal advice can make or break your claim.
The mental health issues are on the rise
No guessing with the economic climate the way it is, mental health conditions are increasing in Australia. There’s a lot of pressure on families. According to the ABS, around 21.5% of Australians, or 4.3 million individuals, experienced a mental health condition over a 12-month timeframe in 2020-2022.
For many, the workplace can be a source of psychological injuries. Consequently, the number of claims for work-related mental health conditions is also on the rise:
- In 2022–2023, there were approximately 14,600 workers’ compensation claims related to psychological injuries, according to Safe Work Australia.
- The average time off work for these claims was 37 weeks.
- Over the past 10 years, mental health claims among 30- to 40-year-old workers have increased by a staggering 730%, as reported in ABC in Dec 2024.
Clearly, mental health conditions must be taken seriously. Not only do these cost the Australian economy billions of dollars in lost wages and reduced productivity, but they also contribute to poor health among workers, creating a vicious cycle.
The bottom line is that if you have suffered or are suffering from a mental health condition, attributable to your employment, there’s likely a lot on the line to lose.
What is workers’ compensation for psychological injury?
Workers’ compensation for psychological injury refers to financial and medical support provided to employees who have developed a mental health condition caused by or aggravated by their work. It applies to both short-term and long-term psychological conditions, provided there is clear evidence linking the injury to your job.
You may be eligible if you’ve been diagnosed with a condition such as:
- Depression caused by bullying or unreasonable workloads
- Anxiety triggered by workplace demands or toxic culture
- Post-traumatic stress disorder (PTSD) after witnessing or experiencing a traumatic incident at work
- Adjustment disorders caused by sudden changes at work—like a demotion or unfair dismissal
However, take note that your job must be a significant contributing factor, not necessarily the only cause.
Why psychological injury claims are different
While physical injuries often have visible evidence, psychological injuries rely heavily on expert diagnosis and detailed documentation. That’s why these claims tend to be more complex and heavily scrutinised by insurers.
You’ll need to show:
- A clear, clinical diagnosis from a qualified medical professional
- A direct link between your job and the psychological condition
- That your injury didn’t arise solely from “reasonable management action” taken properly by your employer (more on this below)
Despite the extra hurdles, with the help of accident legal, many workers have successfully secured workers compensation payouts for psychological injury – often a significant amount of money when permanent impairment or common law damages are involved.
Common causes of work-related psychological injuries in QLD
Psychological injuries don’t just happen – they build up over time or occur after serious incidents. These are some of the most common triggers in Queensland workplaces:
Bullying and harassment
Targeted behaviour like exclusion, humiliation, or intimidation can severely impact mental health. If your employer ignored or failed to address such behaviour, it could strengthen your claim.
Unmanageable workloads
High expectations without proper support or staffing can cause stress, burnout, and anxiety disorders. This is common in high-pressure industries such as healthcare, education, and professional services.
Exposure to traumatic events
Frontline workers – such as paramedics, nurses, and police officers – often face distressing situations that can lead to PTSD.
Unfair treatment or discrimination
If you’ve faced unjust disciplinary action, demotion, or discrimination based on age, gender, race or disability, you may have grounds for a claim – especially if the treatment breached workplace rights.
The ‘reasonable management action’ barrier
Not every mental health issue caused at work is eligible for compensation. Section 32 of the Workers Compensation and Rehabilitation Act 2003 (Qld) excludes injuries that result from reasonable management action. That includes:
- Performance appraisals
- Disciplinary actions
- Transfers or demotions
- Restructuring or redundancies
However, the keyword is “reasonable” – both in the decision itself and how it was carried out. If your dismissal was lawful but done in a humiliating or vindictive way, you might still have a case.
It’s a fine line, and this is where having expert legal advice early can help clarify your position. Reach out to one of our expert Compensation Lawyers today.
What compensation can you receive?
If your psychological injury claim is approved in Queensland, you may be eligible for a range of support:
- Weekly payments
If your psychological injury keeps you off work, you may be paid:
- Up to 85% of your normal weekly earnings for the first 26 weeks, then
- Up to 75% from week 26 to week 104.
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Medical and treatment costs
All reasonable treatment expenses are covered, including GP visits, psychiatric or psychological treatment, medication, and travel to medical appointments.
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Rehabilitation services
These support your recovery and may include retraining, career transition assistance, and return-to-work programs tailored to your needs.
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Lump sum payouts
If you’ve suffered permanent impairment due to your psychological injury, you may be assessed for a lump sum payout, calculated based on the degree of impairment.
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Common law damages
In cases where your employer’s negligence caused the injury, you could sue for common law damages – covering future lost income, pain and suffering, and other long-term consequences.
These damages often make up the largest payouts in successful psychological injury claims in Queensland – and can reach into the hundreds of thousands of dollars.
In 2022–23, SafeWork reported that the average payout for a psychological injury was $65,402.
Remember, the amount you receive depends on several factors — including the type of condition, how it impacts your ability to work, and whether your employer was at fault.
What is the claims process?
Here’s how to lodge a claim for workers compensation for psychological injury in Queensland:
- See your GP: Make sure you get a formal diagnosis and a Work Capacity Certificate linking your psychological injury to work.
- Lodge a claim with WorkCover Queensland or your self-insurer: Include all necessary forms and supporting documents.
- Claim assessment: This usually takes a few weeks. During this time, early intervention treatment is typically funded to support your recovery.
- Outcome: If accepted, you’ll start receiving payments and access to treatment. If rejected, you have appeal rights – but strict time limits apply, so act quickly.
- Permanent impairment assessment (if applicable): This generally happens once your condition stabilises. A doctor will assess your level of impairment, and you may receive a lump sum offer.
Early treatment matters
One of the key changes in Queensland’s approach is early access to treatment, even before your claim is approved. You don’t have to wait.
Eligible treatments may include:
- GP mental health plans
- Psychologist and psychiatrist appointments
- Counselling sessions
- Mental health medications
- Support from the Workers’ Psychological Support Service
Starting treatment early not only improves recovery chances – it also provides documentation that strengthens your claim.
Tips for building a strong claim
To improve your chances of success:
- Record workplace incidents including bullying, unreasonable workload, or traumatic events
- Gather all related evidence, including emails, witness statements, or HR reports
- Engage with medical professionals consistently –ongoing treatment demonstrates impact and seriousness
- Track your condition’s effect on daily life, relationships, and ability to work
- Get legal advice early especially if your employer disputes the claim or raises the “reasonable management” exclusion
Case highlight
In the case of Gairns v Pro Music Pty Ltd [2024] QDC 118, the court awarded the plaintiff a $395,767 payout for psychological injury after a mishandled demotion.
What happened
Mr Gairns had worked for years as a sales supervisor at Pro Music Pty Ltd. In February 2019, during a heated meeting in the open office, his boss suddenly demoted him and cut his pay—without warning, explanation, or a chance to respond.
The company admitted he was easily affected by stress and anxiety. Yet the meeting was held in front of colleagues, his boss raised his voice, and no support person was offered.
Why the employer was liable
The employer was well aware of Gairns’ mental health history:
- He had previously broken down at work, sobbing and hyperventilating.
- The company admitted he was prone to stress and anxiety.
- No performance concerns had been formally raised beforehand.
The court found the company had failed to manage the situation appropriately. They ignored basic procedures, offered no support, and escalated the risk of harm—despite knowing he was at risk.
The injury
Following the incident, Gairns suffered daily anxiety, panic attacks, nightmares, and long-term psychological injury. He was unable to return to work in a similar role.
The result
The court awarded $395,767 in compensation.
It found that when an employer knows an employee is psychologically vulnerable, they must handle workplace decisions with care, privacy, and professionalism. Poor communication and abrupt management practices are not just bad form—they can be legally negligent.
How long might a psychological injury claim take?
This depends on the specifics of your case, but it may take from months to a year. However, WorkCover aims to decide within 20 days of receiving your claim. In 2022–23, the average decision time for psychological injury claims was 34.4 days, similar to 35.5 days in 2021–22.
What are the time limits?
In Queensland, you must lodge a workers’ compensation claim within 6 months of becoming aware of your injury or illness. This usually means 6 months from the date the injury occurred or the date a doctor diagnosed your condition.
Final thoughts
Psychological injuries can impact your life just as much as physical ones—and Queensland’s workers’ comp system is starting to acknowledge that. If your mental health has suffered because of your job, you’re not alone – and you may be entitled to substantial support.
By understanding your rights and getting help early, you can take steps to protect your health, your career, and your financial future.
Better days ahead
At accident legal, we know how challenging psychological injury claims can be, but we’ll guide you every step of the way.
We take the stress off your shoulders by managing the paperwork, collecting expert medical evidence, and dealing directly with insurers and doing everything we can to win your claim. Our game plan is to secure the maximum compensation you’re entitled to – whether through statutory benefits or a common law claim. And with our no win, no fee guarantee, you won’t pay us unless we win your case.
If you’re ready to take the next step, get in touch with one of our Workers’ Compensation Lawyers in Brisbane, Logan, Gold Coast, Noosa, or Maroochydore.
