Changes to ILARS
The recent amendments to the Workers Compensation Act 1987 have now commenced as part of the NSW Government’s workers compensation reforms.
These changes directly impact how the Independent Legal Assistance and Review Service (ILARS) operates.
What has changed
The reforms have:
- Updated the purpose of ILARS
- Introduced new funding criteria for grants of funding through ILARS
- Introduced new regulations aligned with changes to workers compensation laws
- Given the Industrial Relations Commission (IRC) a new role in determining ‘relevant conduct’ in certain psychological injury claims
What This Means for ILARS
ILARS will continue to:
- support injured workers resolve issues with their insurer
- Provide access to legal advice and representation where needed
However, the types of matters eligible for funding—and how funding is assessed—have changed to align with the new legislation.
Changes to ILARS Funding Guidelines
The ILARS Funding Guidelines will be updated in two stages.
Stage 1 – From 1 July 2026
The Guidelines have been amended to reflect the new laws and funding criteria. This has been implemented through an Amending Instrument, which is a formal legal document used to make targeted changes to the existing Guidelines without replacing them entirely.
This includes funding for new types of legal assistance, such as:
- Representation in “relevant conduct” matters before the IRC
- Legal advice on single permanent impairment assessments
These amendments to the ILARS Funding Guidelines ensure compliance with the new legislation.
Stage 2 – By the end of 2026
The current Guidelines will be replaced with new Guidelines.
These will:
- Reflect NSW Government requirements for the administration of grants and funding
- Support earlier resolution of disputes for injured workers
- Align with the broader changes to the workers compensation scheme
Changes for Approved Lawyers
IRO will also update the Approved Lawyer Guidelines.
These updates will:
- Clarify requirements for Approved Lawyers
- Better define the relationship between IRO and law firms receiving funding
- Streamline how IRO monitors funding
There will be no change to the status of existing Approved Lawyers.
Further information will be shared with stakeholders as the changes progress and new Guidelines are developed.