Updates to Workers Compensation Act 1987 (the Act) are due to come into effect in the coming weeks as part of the NSW Government’s Workers Compensation Reform. This includes new regulations to support the amendments to the Personal Injury Commission Act 2020 and the Workers Compensation legislation.
As part of these reforms, the purpose and funding criteria for the Independent Legal Assistance and Review Service (ILARS), as administered by the Independent Review Office (IRO), will be changed.
Other aspects of the workers compensation scheme which are also changing include a new role for the Industrial Relations Commission (IRC) to determining ‘relevant conduct’ in workers compensation claims about psychological injury.
The IRO has an important role in assisting people who are injured at work in resolving complaints with their insurers, as well as providing access to legal assistance and representation to eligible workers where it is needed to resolve a disagreement or dispute with an insurer that may affect a person’s rights or entitlements.
The IRO ILARS Funding Guidelines will be updated to reflect the changes that are soon to be introduced, to ensure they cover all the areas where an Approved Lawyer representing a person who has been injured at work can apply for funding for legal representation or assistance.
These updates will take place in two stages:
Amend the current ILARS Funding Guidelines from 1 July 2026 to reflect the new funding criteria and the regulations so that funding decisions are made in accordance with those criteria and so funding can be applied for to address new events, such as:
- legal assistance and representation to progress ‘relevant conduct’ matters in the IRC, and
- legal advice on the single permanent impairment assessment.
These amendments will enable ILARS to be administered in accordance with the new requirements under the Personal Injury Commission Act 2020 from commencement.
Replace the ILARS Funding Guidelines before the end of 2026 with new streamlined guidelines, reflecting contemporary grants administration principles, and supporting the earliest possible resolution of disputes for injured workers in line with the changes to the workers compensation scheme.
The IRO will also update the Approved Lawyer Guidelines in coming months so that:
- the requirements for Approved Lawyers are clear and reflect the existing oversight of the profession,
- there is a clearer relationship between the IRO and the law firms that Approved Lawyers are associated with and to which funding is paid, and
- the IRO’s monitoring of funding is streamlined and proportionate to the scale of ILARS funding provided.
These changes will not affect the status of any existing Approved Lawyer.
There will be consultation on the new ILARS Funding Guidelines and the Approved Lawyer Guidelines with unions and through representatives of the legal community.
Further information will be provided to all IRO stakeholders as these changes are made, and consultation on new Guidelines is undertaken.