Why “Interim Payments” are needed?
Under the new Workers Compensation framework for psychological injury claims, an insurer is required to consider an injured person’s eligibility for ‘interim payments’ within 7 days of notification of a claim (Workers Compensation Regulation 2016, reg 42H).
Interim payments are akin to provisional liability payments. Provisional payments still operate under the current legislation but are not applicable in new psychological injury claims from 1 July 2026 for relevant conduct claims.
Broadly, interim payments cover applicable weekly compensation and reasonably necessary treatment for a maximum of 42 days. We will be providing more information on interim payments themselves next week.
If an insurer takes the view that interim payments do not apply, they will provide an injured person with a list of material to obtain. When it is obtained, the insurer will revisit liability for interim payments or overall liability within 3 business days (Workers Compensation Regulation 2016, reg 42G).
Perhaps an unanticipated downside to the new framework in general and the interim payments support in particular, is that if the insurer determines that interim payments do not apply, the injured person receives no assistance at all from the scheme.
Previously, if a reasonable excuse was applied at the lodgment of a claim, weekly compensation would not be paid but at least the injured person could access reasonably necessary treatment for a time. The benefits of this are self-evident. The injured person has help to get better, return to work can be promoted and as their health improves, and they may be in a better space to participate in the insurer’s liability determination process.
Sadly, if interim payments are denied, access to not just weekly compensation but vitally needed treatment is withheld. If an insurer behaves in a way that resembles rigging the system to delay or deny interim payments, the unwell injured person is left needing to compile a monstrous amount of documentation, without any health professional support.
We are deeply concerned about the impact this may have on injured workers. The documentation and information now required as part of the claims process is much more onerous than its predecessor. If you need assistance with the claim form, please see our article on new psychological injury claims, which provides some helpful tips. With no access to treatment, this may create additional hurdles for injured workers to overcome.
If you have lodged a new workers compensation claim for a psychological injury and need assistance, reach out to our expert team via the enquiry form on this page or call us on (02) 8046 9700.
Sources: Workers Compensation Regulation 2016 (NSW) reg 42H and reg 42G.
This article is general information only and is not legal advice. It reflects the law of NSW as at July 2026. Transitional rules may apply to your claim depending on when your injury was notified. Obtain advice about your specific circumstances.
