From 1 December 2025, Victoria will introduce Occupational Health and Safety (Psychological Health) Regulations that place mental health risks on the same footing as physical ones.
First flagged in 2021 and confirmed by the Victorian Government in February 2025, the regulations will be finalised in October 2025 and supported by a Compliance Code offering practical guidance and templates.
Like similar frameworks in other states and territories, the focus is on preventative risk management. Namely, the identification of psychosocial hazards, their control, and regular review of those controls with workers as circumstances change. Victoria’s approach is expected to be more detailed, offering greater clarity for employers.
What are psychosocial hazards?
Psychosocial hazards are aspects of work that can harm an employee’s mental health.
These include:
- Bullying, sexual harassment, aggression or violence
- Exposure to traumatic events or content
- High job demands or low job control
- Poor support, unclear roles, or badly managed organisational change.
While employers already have a duty under the Victorian OHS Act to manage these risks, the new regulations aim to make the “how” much clearer and more consistent.
Increased regulatory focus and enforcement
Even before these strengthened laws take effect, prosecutions in Victoria and beyond reveal regulators’ increasing focus on psychological safety:
Victoria
- Court Services Victoria (Oct 2023) were convicted and fined $379,157 after a toxic culture at the Coroners Court contributed to a worker’s death. The court recognised psychosocial risk as a clear safety duty.
- A Toy wholesaler (May 2025) was fined $100,000 for exposing staff to psychological injury risk from sexual harassment, with no policies, reporting pathways, or training in place.
- A caravan park operator (Jul 2025) is facing charges over alleged sexual harassment creating psychological injury risk, with the matter listed for hearing on 2 September 2025 in the Wodonga Magistrates’ Court.
New South Wales
- The Western Sydney Local Health District (Apr–Jun 2025) was facing prosecution for psychosocial risk, the claim was withdrawn after three weeks of evidence, highlighting the challenges of proving causation when risks stem from grievance handling rather than direct misconduct.
Staying ahead of the risk curve
To prepare for Victoria’s new regulations Bellrock Benefits recommends the following actions:
- Complete a risk assessment
Consult both your workers and HR. This is an area where WHS and HR functions must work closely together. - Implement baseline controls
o Behaviour and sexual harassment policies
o Multiple reporting channels, including anonymous options
o Defined triage and response timeframes
o Leadership and workforce training. - Consult existing guidance
While Victoria’s Compliance Code is pending, employers should draw on national and interstate materials such as NSW and QLD guidance and Codes of Practice. - Ongoing review
Employers should revisit controls after incidents, complaints, organisational changes, or workload spikes. For high-risk areas such as customer-facing roles or those exposed to trauma, it would be prudent to develop written prevention plans even if they are not mandatory. - Document and demonstrate compliance
Keep records of risk assessments, consultations, training, policy reviews, and actions taken. Documentation not only supports continuous improvement, but it can also be your strongest defence if WorkSafe or another regulator investigates.
The incoming Victorian regulations are not simply a compliance hurdle. They represent a cultural shift towards proactive, evidence-based management of mental health risks.
Organisations that act now, by embedding clear policies, fostering open reporting, and continually reviewing workplace culture, will not only meet their legal obligations but also strengthen resilience, improve staff retention, and create a safer, more engaged workforce.
At Bellrock Benefits, we see this as an opportunity for leaders to close the gap between policy and practice and set a new benchmark for workplace wellbeing.
Download our Psychological Safety Risk Scorecard here. To discuss your workplace risk management needs, contact James Ritchie.
