Published: 7th April 2026  |  Reading time: approx. 8 minutes

Your WHS Obligations Around Psychosocial Risks: A Plain-English Guide for Australian Employers

1. The General Duty of Care Under WHS Law

Under the Work Health and Safety Act (the Model WHS Act, adopted across most Australian jurisdictions), a Person Conducting a Business or Undertaking (PCBU) must ensure, so far as is reasonably practicable, the health, safety and welfare of workers. Critically, "health" is defined to include both physical and psychological health.

This means the duty of care that applies to physical hazards — machinery, chemicals, manual handling — applies equally to psychosocial hazards. This has always been the case under the general duty. What changed in recent years is that the Model WHS Regulations now make this obligation explicit and structured.

2. The Model WHS Regulations: What Changed in 2022

In 2022, Safe Work Australia amended the Model WHS Regulations to include specific provisions on psychosocial hazards. These amendments have been progressively adopted across Australian states and territories.

The regulations now explicitly require PCBUs to:

This is the standard four-step risk management process — the same one already required for physical hazards — now applied explicitly to psychosocial risks.

3. Which States and Territories Have Adopted the New Regulations?

The amended psychosocial regulations have been adopted in the following jurisdictions:

• Commonwealth (federal workplaces)
• New South Wales
• Queensland
• South Australia
• Tasmania
• Australian Capital Territory
• Northern Territory

Victoria operates under its own framework — the Occupational Health and Safety Act 2004 — which similarly imposes duties around psychological health, including a specific framework for workplace psychological safety introduced by WorkSafe Victoria. Western Australia adopted harmonised WHS legislation in 2022.

4. What "Reasonably Practicable" Means in Practice

The phrase so far as is reasonably practicable appears throughout WHS law and is central to understanding your obligations. It does not mean you must eliminate every possible risk regardless of cost or difficulty — but it does set a meaningful standard.

To determine what is reasonably practicable, you must weigh up:

• The likelihood of the hazard causing harm
• The degree of harm that could result
• What you know (or reasonably should know) about the hazard and how to control it
• The availability of ways to eliminate or minimise the risk
• The cost of the control measure, weighed against the risk involved

Cost alone is not a reason to avoid action. The greater the potential for harm, the less weight cost carries as a justification for inaction.

5. Your Four-Step Compliance Obligation in Detail

Identify hazards

You are required to identify all psychosocial hazards workers may be exposed to. Safe Work Australia has published a list of 14 recognised psychosocial hazards, which includes job demands, low job control, poor support, lack of role clarity, poor organisational change management, inadequate reward and recognition, poor organisational justice, traumatic events or material, remote or isolated work, poor physical environment, violence and aggression, bullying, harassment (including sexual harassment), and conflict or poor workplace relationships.

Identification should involve consulting with workers — they are the most reliable source of information about the hazards they actually face.

Assess the risks

A risk assessment involves looking at each identified hazard and evaluating the likelihood and potential severity of harm. You should consider factors such as how frequently workers are exposed, how many workers are affected, and whether the hazard interacts with others (for example, high job demands combined with low support is particularly harmful).

Risk assessment does not need to be a complex document, but it does need to be systematic and documented.

Implement control measures

Control measures should aim to eliminate the hazard at the source where possible. Where elimination is not reasonably practicable, you must minimise the risk. The hierarchy of controls applies — engineering and administrative controls are preferred over relying on individuals to manage their own stress or distress.

Examples of control measures include redesigning job roles to reduce demands, improving communication and consultation processes, providing clear reporting pathways for bullying or conflict, and ensuring workloads are regularly reviewed.

Review and maintain

Control measures must be monitored and reviewed, particularly when there are workplace changes (restructures, new systems, personnel changes) or following an incident. Psychosocial risk management is not a one-time exercise — it is an ongoing process.

6. Duties of Officers and Managers

Under the WHS Act, officers of a PCBU — including directors, partners, senior managers, and others who influence decision-making — have a separate duty to exercise due diligence. This means they must take reasonable steps to:

• Keep up to date with knowledge about psychosocial hazards
• Understand the nature of the organisation's operations and the associated psychosocial risks
• Ensure the business has — and uses — appropriate resources and processes to manage those risks
• Verify that reporting and investigation processes are actually working

This is a personal duty, separate from the duty of the business entity. An officer cannot simply delegate responsibility for WHS and consider their obligation discharged.

7. Does This Apply to Small Businesses?

Yes. WHS obligations apply to all PCBUs regardless of size. There is no exemption for small businesses, sole traders, or organisations with fewer than a certain number of employees.

The practical difference is one of scale and proportionality — a small team of five people and a workforce of five hundred will implement controls differently. But the legal obligation to identify hazards, assess risks, and implement controls is the same.

8. Where to Start

If you have not yet formalised your approach to psychosocial risk management, the most important first step is to establish a documented process aligned to the four-step framework above. This does not need to be complex — a clear set of templates and procedures, tailored to your workplace, is sufficient for most SMEs.

A practical starting point includes:

1. A psychosocial hazard register listing identified hazards in your workplace
2. A risk assessment template for evaluating likelihood and severity
3. A control measures register documenting what actions are in place
4. A worker consultation record showing that workers were involved in the process
5. A review schedule for checking controls remain effective

These documents form the foundation of a defensible WHS compliance system — one you can point to if a regulator ever asks what steps you have taken.

Frequently Asked Questions

Can I be penalised for failing to manage psychosocial hazards?

Yes. Breaches of the WHS Act — including failure to manage psychosocial hazards — can result in significant penalties. Under the Model WHS Act, the maximum penalty for a Category 1 offence (reckless conduct exposing someone to risk of serious harm) is over $3 million for a corporation and $300,000 plus up to five years imprisonment for an individual. Even administrative penalties for lower-level breaches can be substantial.

Is psychological injury covered by workers' compensation?

Yes. Workers' compensation schemes across Australia cover psychological injuries, including stress, anxiety, depression, and PTSD arising from work. Employers with poor psychosocial risk management are therefore also exposed to workers' compensation claims and the associated premium impacts.

Do I need a written policy?

While a written policy alone does not satisfy your WHS obligations, it is a foundational document that sets expectations and demonstrates your commitment to managing psychosocial risks. A policy should be supported by practical procedures — a policy document sitting in a drawer with no operational substance behind it is unlikely to assist you in a dispute or inspection.

What is Safe Work Australia's role?

Safe Work Australia is the national policy body that develops the Model WHS laws, guidance material, and codes of practice. It does not enforce WHS laws — that is the role of the individual state and territory regulators. However, Safe Work Australia's guidance material, including its Code of Practice on Managing Psychosocial Hazards at Work, is highly relevant and can be used as a practical compliance reference.

Disclaimer: This article is for general informational purposes only and does not constitute legal or professional WHS advice. Review all information against applicable legislation in your state or territory and seek expert guidance where required.