Victoria – Psychological Health Legislation is Here
Victoria introduces psychological health laws—businesses are on notice from 1 Dec 2025.
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The Importance of Complying with New Victorian Psychological Health Legislation
Workplace mental health has become a growing concern in Australia, with Federal Legislation introduced in 2023 and other states and territories following suit. After what seems like an eternity of industry engagement and reviews, Victoria is finally taking steps to protect employees from psychological harm.
From December 1, 2025 these new regulations are in effect, which means Victorian businesses must take proactive measures to comply. This legislation aims to ensure that workplaces address risks such as bullying, harassment, and workplace stress, creating safer environments for all employees.
Why Compliance Matters
Failing to comply with managing psychosocial hazards not only harms employees but also affects businesses through increased absenteeism, increased turnover, and potential legal consequences. Mental injury claims have been on the rise, and this legislation aims to curb that trend by holding businesses accountable for maintaining mentally healthy workplaces.
What Businesses Need to Do
To comply with the new regulations, businesses should:
1. Identify and Manage Psychosocial Risks
Ensure employees have a clear path to reporting incidents, including anonymous reporting. Engage with your staff via surveys or other forms of consultation to ensure that you have correctly identified all risks across the business.
Conduct risk assessments to determine potential hazards in the workplace, such as high workloads, poor workplace culture, or exposure to traumatic events.
2. Implement Preventative Measures
Develop and implement controls and strategies to mitigate risks, such as training programs, reporting systems, and clear policies on workplace behaviour.
3. Provide Employee Support
Ensure employees have access to mental health resources, such as Employee Assistance Programs (EAPs) or employee counselling services.
4. Monitor and Review
Regularly evaluate workplace mental health policies and make adjustments as necessary to maintain compliance.
The Benefits of Compliance
By following these regulations, businesses will not only meet legal requirements but also experience tangible benefits:
Enhanced Employee Wellbeing – A mentally healthy workplace leads to higher morale, job satisfaction, and retention rates.
Increased Productivity – Reducing stress and burnout results in improved efficiency and performance.
Stronger Reputation – Companies that prioritise employee wellbeing are seen as employers of choice and more desirable workplaces.
Legal Protection – Compliance helps mitigate risks of fines, compensation clams, lawsuits, and reputational damage.
Taking the First Step
The introduction of these regulations represents an opportunity to transform your workplace culture and genuinely prioritise employee wellbeing. Organisations that embrace this change proactively will not only achieve compliance but will also see benefits in employee engagement, retention, and overall organisational performance.
The regulations acknowledge that implementing effective psychosocial risk management takes time and effort. WorkSafe's approach during this transition period recognises that many organisations are building this capability from the ground up.
However, delaying action only increases risk for both your employees and your organisation. Every day without proper psychological risk management is a day where employees may be exposed to preventable harm.
For further details on the legislation, visit Worksafe Victoria.
Help is always available
Here are some useful resources for more help – for you and for your team:
- Lifeline – 13 11 14 and https://www.lifeline.org.au/ – offers fee, confidential, 24/7 telephone crisis support and lots of info and resources on their website
- Beyond Blue – https://www.beyondblue.org.au/ – info and support about mental health and suicide prevention
- Heads Up – https://www.headsup.org.au/ – the part of Beyond Blue that is specially developed for mental health in the workplace
This post has discussed challenging topics, which can be confronting for particular readers. If you need support, please feel free to contact Lifeline on 13 11 14 or 000 if you need immediate help to stay safe.
Find out more about how Foremind is making access to mental health mainstream for workers and supporting companies manage their Psychosocial Hazard compliance!
Related Links
Related Links
- Psychosocial Hazards Legislation For NSW
- Psychosocial Hazards Legislation For Queensland
- What is Mental Health First Aid?
- What Are Psychological Injuries At Work?
- Psychological Safety At Work Examples
Answers to the frequently asked questions.
Email us at enquiries@foremind.com.au and we'll get back to you quickly with a response
No. An EAP is a control measure, and a valuable one, but it only addresses harm after it has occurred. It doesn't identify hazards, assess risk, or evidence that controls are working.
Australian WHS law requires you to identify psychosocial hazards, assess the risk, control it so far as is reasonably practicable, and review whether those controls are working — with documented evidence at each step. Offering counselling on its own leaves three of those four steps undocumented.
Foremind covers both in one platform. See how the compliance side works in our product tour.
Yes. Psychosocial risk obligations apply regardless of organisation or business size, and Foremind is built to make compliance simple without enterprise-level complexity.
Nothing that could identify anyone. All counselling is completely confidential and all reporting is anonymous - you'll never see who booked, when, or what was discussed.
What you do see is the aggregated picture: how many people are using it, what psychosocial risks are prevalent in the business, and which teams are under pressure. Enough to know the investment is working and where to act, never enough to identify a person. Reporting thresholds mean small teams can't be reverse-engineered from the data.
A spreadsheet can hold your notes, but it can't show a regulator how you're managing risk over time. You need one place that records what you found, what you did about it, and whether it worked.