Australia’s new psychosocial regulations mean HR can no longer treat mental health as a “nice to have”
Australia’s new psychosocial risk laws are reshaping HR’s role in workplace health and safety, with regulators now treating psychological harm as seriously as physical injury.
For HR leaders, that shift is no longer theoretical – it is playing out in enforcement, governance and day‑to‑day decision making.
Speaking about the impact, Stephen Smith, executive manager, safety and wellbeing at nbn and panel speaker at the upcoming National HR Summit 2026 said the biggest change is the arrival of a nationally consistent baseline for psychosocial risk management.
Across Australia, both federal and state jurisdictions have adopted updated Codes of Practice for managing psychosocial hazards, built from the national framework developed by Safe Work Australia.
These Codes, introduced by Comcare at the Commonwealth level and progressively mirrored by state regulators, now set a clear expectation that employers must identify, eliminate or minimise psychosocial hazards through a structured risk management approach.
Just as importantly, they clarify what those hazards are – including role clarity, change management, job demands, workplace behaviours and intrusive surveillance – giving organisations a common language and a more precise set of obligations to work with.
Regulators, meanwhile, have shifted decisively from guidance into enforcement. Smith noted that agencies such as Comcare are no longer waiting for formal complaints before acting. They are initiating investigations based on signals, early indicators and even media reports, and they expect organisations to be able to show documented risk assessments, controls, consultation processes and evidence of continuous improvement.
The first Commonwealth prosecution for failing to manage psychosocial risks has underlined a critical message for boards and executives: psychological health is now squarely in the same compliance category as physical safety, and the days of treating it as a “soft” or secondary concern are over.
This regulatory environment is transforming the work of HR teams. According to Smith, the new obligations have effectively created a convergence of HR, safety and employee relations (ER), each bringing different strengths that now must operate as a single, integrated system.
Safety brings the discipline of systematic risk management – from hazard identification through to controls, assurance and governance.
HR adds the levers that shape organisational capability and culture, such as leadership development and the design of ways of working that prevent psychosocial harm before it arises.
ER contributes behavioural clarity, fair process and trauma-informed investigations, which are essential for resolving conduct issues safely and consistently.
Instead of functioning as separate streams, these disciplines are being reconfigured around shared frameworks and aligned workflows.
Smith noted that at nbn, this integration is already improving decision making, reducing risk and lifting the overall employee experience.
Cases that might once have been handled in isolated pockets are now viewed through a combined safety–HR–ER lens, enabling a fuller understanding of underlying hazards such as workload, role ambiguity or poor change management.
For employers looking to remain compliant, Smith is clear that policy updates alone will not be enough. Compliance now demands an uplift in organisational culture, systems and capability.
At nbn, that begins with embedding a risk management mindset across the organisation so that psychosocial hazards are identified early and managed through structured controls rather than ad hoc responses.
It extends into building integrated systems and workflows, including strengthened case management that connects safety, HR and ER processes. This integration supports better detection of hotspots, more consistent risk-based decision making and a clearer view of trends in psychological health across the workforce.
Leadership capability is another critical focus. Smith stressed that leaders need to be able to recognise psychosocial hazards, consult meaningfully with their teams and design work that is both safe and healthy.
That involves equipping them to manage job demands, provide clarity during change, address inappropriate behaviours and understand when an emerging issue is actually a signal of broader systemic risk.
Transparency and governance are being reshaped as well. Psychosocial risk trends that might once have been discussed only within HR are now elevated through executive and board reporting at nbn, placing psychological health firmly within enterprise risk discussions.
Psychosocial obligations are also being built into assurance and audit frameworks so that controls are not just documented but tested, monitored and continuously improved over time.
For HR leaders, the message from nbn’s experience is that psychosocial risk management can no longer sit on the fringes of people strategy. It requires deep collaboration between HR, ER and safety, supported by integrated systems and a shared risk lens.
Done well, Smith argues, this approach does more than keep organisations on the right side of the law. It creates safer work, strengthens business outcomes and delivers a better employee experience – turning compliance into a catalyst for more sustainable and human‑centred workplaces.
Smith will be speaking in more detail on this topic at the National HR Summit Australia 2026.
His panel discussion will give HR leaders the [practical tools to tackle psychosocial hazards and build a safer and more compliant workplace.
To learn more about the National HR Summit 2026 and secure your ticket, click here.
