ISO 45003 and Psychosocial Risk: 2026 Landscape
2026 marks a landmark year in psychosocial risk compliance for Australian businesses. From now on, businesses and Persons Conducting a Business or Undertaking (PCBU) face serious penalties not only after a serious psychosocial harm has occurred, but also when a failure to take reasonably practicable steps to ensure that harm does not occur in their workplace. Writing a policy (1) or holding meetings on the topic (2) alone are not adequate, and case law supports this. An EAP or an online training module similarly will not satisfy compliance for psychosocial risk management, compliance requires a range of meaningful steps to understand psychosocial risk and develop the tools necessary to mitigate the risks which cannot be eliminated or reduced. All the measures just mentioned can be part of that process, but they are not enough in isolation.
The first step (3) (identify risks) in becoming compliant is meaningful consultation with workers, be they full-time, part-time or casual employees, contractors or visitors. The type of consultation needed will depend on the nature of your business, workforce and how much work has already been done in this area previously in your business. To be meaningful the consultation needs to be safe, where workers are free of consequences if they express concerns – ideally being able to do so anonymously or not identifiably to managers, and it needs to be designed to gather accurate and relevant data without being taxing to staff. Workers need to be assured that the data collected will be actioned, ideally being given some idea of how it will be used, and most importantly, that must actually occur to reinforce trust in your workforce.
Next, the data gathered during consultation (assess risks) needs to inform (control risks) policies, procedures and processes that inform and guide the management of psychosocial risk alongside actions taken that contextualise the policy suite and provide meaningful support, training and accommodations frameworks which don’t just tick a box, but also demonstrably improve the health and wellbeing of workers, which results in more effective teams and better work product.
The third step (control risks), implementing good psychosocial risk management isn’t just about avoiding fines, it is sound business practice which can reduce staff turnover, build amazing culture and make your business an employer of choice. Implementation is where all the work done in prior steps moves from theory to action, and it is where the business can start to see the benefits of changes made. It involves training, providing accommodations, changing office set up and workflows. It is also the part of the process that can get a bit messy before it gets better, so this is where the leaders in the business can really shine and bring everyone along on the journey that they have planned.
Finally, throughout the transition and once your workplace has settled into its new rhythm, it’s really important to go back and review how the changes went and implement feedback (review control measures).
Over the last few years, PCBUs have been able to use the People at Work (PAW)(4) tool on the WorkSafe website to assist with compliance. In 2026 PAW is being decommissioned and businesses will no longer be able to use this tool to address psychosocial risk compliance. This is where IDEA consulting can step in to work with you and your workforce to address your compliance needs using a meaningful and data-driven process and producing thorough documentation to ensure that when you are audited, you can produce clear evidence of the reasonably practicable actions taken to address the psychosocial hazards that were identified through meaningful consultation, and were addressed in clear actions alongside well-written policy documents.
Contact me to set up a free brief meeting to discuss how I can work with you on this issue.
Taz Clifford
Principal, IDEA Consulting
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2 - https://www.pinsentmasons.com/out-law/analysis/victorian-case-psychosocial-risk-policies-training
4 - https://www.worksafe.qld.gov.au/safety-and-prevention/mental-health/people-at-work
