Understanding Australia's New Work Health and Safety Laws

From July 2025, Australian businesses are facing a shift: managing psychosocial risks is no longer optional.

Under updated Work Health & Safety (WHS) laws, organisations must proactively identify, assess, mitigate, and monitor risks to employees’ psychological health. At MOOD.ai, we help you meet these obligations with real-time visibility, anonymised data, and AI-powered insights – making psychological safety simple.

What’s Changing in the Law

Here are the major changes to be aware of:

  • Model WHS Regulations & Code of Practice: Safe Work Australia has updated its model WHS laws to specifically include psychosocial hazards. Businesses must now identify hazards, assess risks, implement controls, and review them regularly.
  • State and territory adoption: Most jurisdictions are adopting these changes. The Victorian Government, for example, has confirmed its Psychological Health Regulations will take effect on 1 December 2025.
  • Stronger enforcement: Regulators are increasing focus on psychosocial hazards. LegalVision notes that inspectors are already issuing notices and penalties where risks are unmanaged.
  • Business risks: According to Piper Alderman, mental health claims are growing in number and cost. Failing to act is now a legal, financial, and reputational risk.

Why It Matters

The evidence is clear: unmanaged psychosocial hazards lead to burnout, stress, anxiety, depression – and even physical illness. Workplaces that address psychosocial safety see measurable improvements in wellbeing, retention, and productivity (Potter et al., 2025).

This is more than compliance. It's about building workplaces where people feel safe, supported, and able to thrive.

What Organisations Need to Do

According to Safe Work Australia, here's how organisations must comply with the new obligations:

  1. Identify hazards – workload, role clarity, bullying, harassment, poor support, conflict, lack of recognition, and more.
  2. Assess risk – understand the severity, likelihood, and interaction of multiple hazards.
  3. Control risks – take steps to eliminate or minimise hazards, from redesigning work to improving change management.
  4. Monitor and review – regularly check if measures are working and adapt as needed.
  5. Consult and support – involve staff, train leaders, and build a culture of open feedback.

How MOOD.ai Helps

MOOD.ai has been designed from the ground up to align with WHS obligations – and to make them easy.

  • Identify hazards: Staff check in anonymously with colour-based mood tracking across 14 categories, from workload and supervisor support to recognition and role clarity. Word clouds reveal the issues rising to the surface.
  • Assess risks in real time: Leaders see anonymised wellbeing trends and burnout risk across teams, locations, or time periods. Risks are visible before they escalate.
  • Guide actions: AI insights recommend practical steps tailored to emerging issues. Built-in connections to your EAP ensure staff get professional support quickly.
  • Monitor progress: Every employee has a private dashboard showing mood trends, stress levels, and personal insights. At the organisational level, dashboards reveal whether interventions are working.
  • Strengthen culture: The AI chat and journal give staff a safe space to reflect. Leaders receive anonymised feedback, making it easier to respond with empathy and build a climate of trust.

What You Should Do Now

Now is the time to get ahead of the changes and set your organisation up for success. Here’s how:

  • Audit your organisation’s exposure to psychosocial hazards.
  • Check if you have regular, anonymous data on wellbeing – and whether it covers all risk areas.
  • Review how visible and accessible your support services are.
  • Train managers to recognise early warning signs and respond with empathy.
  • Adopt tools like MOOD.ai that make compliance easier – and culture stronger.

In Summary

Managing psychosocial risks has now become a legal duty for every Australian employer. But compliance doesn't have to be complex.

MOOD.ai makes psychological safety simple – giving you the visibility, insights, and tools you need to protect your people and your business.

Book a demo to see how MOOD.ai helps organisations improve wellbeing, reduce burnout, and meet new WHS obligations with ease.