This independent report examines the key drivers that contribute to an injured worker developing a secondary psychological injury in Australia. Secondary psychological injury refers to new or worsening mental health symptoms during a workers’ compensation claim.

Mental health and psychological injury have become a growing priority for Australian workplaces. Workers’ compensation claims for primary mental health conditions last significantly longer than claims for physical conditions and have increased to over 10% of claims in 2022–23. Concerns have been raised about the impact of secondary psychological injury on worker recovery and return to work, claims costs and compensation scheme sustainability. 

The report includes a review of national and international academic literature, consultation with key stakeholders in the workers’ compensation sector, analysis of survey and interview data from injured workers and analysis of workers’ compensation claims and payment data linked to the Medicare and Pharmaceutical Benefits Schemes data. 

Based on the findings, several policy and practice recommendations are proposed. The report will inform further work under the National Return to Work Strategy 2020–2030.