WorkCover and Mental Health: A Guide to Psychological Injury Claims in Victoria

Sunday night arrives. You lie awake worrying about what tomorrow might bring.  We may notice our stomach tighten at the thought of work tomorrow.

You may notice how stressed you have felt lately. Headaches may have become more frequent. Your jaw may aches from clenching your teeth, or the muscles in your neck and shoulders feel tight. It feels as though your body has forgotten how to relax. 

Even when you're not working, your mind never seems to fully leave the office. You may feel like you’re constantly ‘on edge’, or that something is wrong.

You tell yourself to just get through today. Then tomorrow. Then the day after that.

Another week passes. And then another.

Gradually, you may realise you're no longer just struggling at work. The stress has begun spilling into the rest of your life.

Self-care slips away. The things that once brought you joy don't feel quite the same anymore. You find yourself feeling overwhelmed, more irritable or impatient with the people you care about.

Deep down, we may feel like we can no longer cope.

Work-related stress is common.

Nearly all of us will go through difficult or challenging periods at work at some point in our lives. 

However, when work begins to have a significant and lasting effect on your wellbeing and quality of life, it may be a sign that something more serious is happening.

If what you've just read feels all too familiar, it may be worth taking a moment to reflect on how work has been affecting you.

I don't mean just while you're at work, but after hours, on weekends, your relationships, your sleep, and your overall quality of life.

Many people minimise or normalise these experiences for months before recognising that work has begun affecting their mental health in a much more significant way.

If you feel you've reached a point where you feel like you're no longer coping, or that you are completely lost or out of your depth, it's important to know that you don't have to navigate this alone. Support is available.

What is WorkCover?

WorkCover is Victoria's workers' compensation scheme. Its purpose is to help workers access the treatment, support, and financial assistance they need while they recover and, where possible, safely return to work. 

One of the most common misconceptions is that WorkCover is only for physical injuries. This is not true. Work related mental health claims, or ‘psychological injury’ can also be covered under the Victorian WorkCover scheme. 

If your mental health has been significantly affected by your work, you may also be eligible to make a psychological injury claim.

Psychological injuries can arise from a range of workplace experiences, including prolonged exposure to excessive work demands, bullying, harassment, occupational violence, traumatic events, or other factors referred to as ‘psychosocial hazards’ (more on this is another post).

Depending on your circumstances, this may include funding for medical treatment, psychology appointments, income support if you're unable to work, and assistance with returning to work. 

For example, WorkCover may fund psychological treatment (currently $203.90 per session) for up to 13 weeks while your claim is being assessed, helping you access support without waiting for a final decision.

Please know, if you are reading this, you are not alone.

Over the last decade, psychological injury claims under WorkCover have increased by 161%. Work related mental health claims are now projected to become the second most common type of claim made under Workcover in the next few years (Safe Work Australia, 2025). 

Although this guide focuses on Victoria's WorkCover system, WorkSafe Australia mandates that every Australian state and territory has its own workers' compensation scheme that provides support for eligible workers who experience work-related injuries, including psychological injuries. The names, eligibility criteria, and claims processes vary between jurisdictions.

Common WorkCover Issues I Work With

I work with a range of work-related issues, such as:

• Anxiety, depression, or burnout related to work.

• Bullying and intimidation.

• Harassment, including sexual harassment.

• Violence, threats, or aggressive behaviour at work.

• Exposure to traumatic incidents at work.

• Excessive workload or unrealistic expectations.

• Poor leadership or management.

• Unclear job expectations or constantly changing responsibilities.

• Poorly managed organisational change, restructures, or redundancies.

• Ongoing workplace conflict.

• Discrimination or unfair treatment.

• Psychological impacts following a physical workplace injury.

• Support navigating the WorkCover process.

• Advocacy for workplace adjustments and graduated return-to-work planning.

Many people worry that because they have previous anxiety, depression, trauma, relationship difficulties or other life stressors, they won't qualify for WorkCover.

That's not necessarily true.

The question isn't whether other stressors exist. The question is whether your work is the largest contributing cause of your psychological injury. 

Someone can have previous mental health difficulties and still have a compensable psychological injury if work is what has predominantly caused the current deterioration.

How Can an Organisational Psychologist Support You?

Work-related psychological injuries affect more than just your mental health. They often impact confidence, relationships, finances, identity, and sense of safety at work.

As an Organisational Psychology Registrar, I understand not only how work can affect mental health, but also the workplace factors that often contribute to psychological injury. Together, we can work to:

• Assess your psychological injury and the role work has played in its development

• Understand how your workplace has affected your mental health.

• Develop practical strategies to manage symptoms such as anxiety, low mood, sleep difficulties, stress, worry, and fatigue.

• Support your recovery from bullying, harassment, workplace conflict, burnout, or traumatic workplace events.

• Identify and recommend reasonable workplace adjustments to support your recovery and return to work.

• Develop safe, gradual, and sustainable return-to-work plans.

• Advocate on your behalf by working collaboratively with your GP, employer, insurer, and rehabilitation providers.

• Assist with WorkCover reports, referrals, and other documentation required throughout your claim.

• Build confidence and help you reconnect with work and life in a way that feels sustainable.

Before Your First WorkCover Appointment

Booking your first WorkCover appointment is straightforward, but there are a few things we'll need before we can get started.

i) An approved WorkCover claim (or provisional approval for psychological treatment) Before your first appointment, we'll need confirmation from your WorkCover insurer that psychology services have been approved. This is usually provided in writing by your WorkCover Case Manager.

ii) A referral from your GP We'll also need a referral from your GP recommending psychological treatment under your WorkCover claim.

iii) Your WorkCover claim details Please provide your WorkCover claim number and a copy of your approval letter (if available) before your first appointment.

If you're unsure whether you have everything you need, don't worry. Get in touch and we'll let you know what's required before your first session.

Not sure where you are in the process? Whether you've just lodged a claim, your claim has recently been accepted, or you're unsure what paperwork you need, feel free to get in touch. I partner with Reimagine Psychology for administrative support. Our team can help guide you through what's required before your first appointment.

FAQ’s

What is the out-of-pocket cost per session?

WorkCover can provide funding of $203.90 towards each psychology session. My fee for WorkCover clients is $233.08, leaving an out-of-pocket cost of $29.98 per session.

Can I continue therapy after my WorkCover funding ends?

Yes. If you feel you'd benefit from ongoing support, you're welcome to continue seeing me after your WorkCover funding finishes. If claims are accepted, it is common that WorkCover continues to provide ongoing financial support. Many clients continue under Medicare-supported sessions or privately funded sessions. We’ll talk this through when it comes up.

Do you offer telehealth appointments?

Yes. I offer both in-person appointments in West Melbourne, telehealth sessions via video or phone calls. You can choose the option that best suits you.

Can I stay at work while on WorkCover?

Yes. Being on WorkCover doesn't automatically mean you have to stop working. Some people continue working with reduced hours or modified duties, while others may need time away from work to focus on their recovery. This will depend on your symptoms, your treating team's recommendations, and what is safe and appropriate for your situation.

Does burnout qualify for WorkCover?

Burnout itself is not a recognised medical diagnosis. However, if work has contributed to a diagnosable psychological injury, you may be eligible for WorkCover. Eligibility depends on your individual circumstances and whether your employment is considered the predominant cause of your injury.

How long does a WorkCover claim take?

In most cases, WorkSafe or its agent must decide whether to accept or reject your claim within 28 days of receiving a valid claim. If a decision isn't made within this timeframe, the claim may be treated as accepted under the legislation, provided the legal requirements are met.

If your claim is accepted, your approved treatment and any eligible benefits can begin shortly afterwards. If WorkSafe needs additional information to assess your claim, they may contact you, your treating practitioners, or arrange an independent medical examination before making a decision.

What happens if my WorkCover claim is rejected?

If your claim is rejected, you still have options. Many decisions can be reviewed, and disputes are commonly referred to conciliation as the first step in resolving disagreements. A conciliation conference is often scheduled within 40–50 days after a request is received, although timeframes can vary depending on the circumstances.

If work has begun affecting your mental health, you don't have to navigate it alone. Whether or not WorkCover ultimately becomes part of your recovery, speaking with a GP or psychologist can help you better understand what you're experiencing and the options available to you.

References:

Safe Work Australia. (2025). Key work health and safety statistics Australia 2025. https://www.safeworkaustralia.gov.au/media-centre/news/key-work-health-and-safety-statistics-australia-2025-now-available