Running a small business comes with a lot of moving parts, and staying across changing laws is rarely at the top of the to-do list. But when it comes to the health and safety of your team, a few recent changes to workplace laws in Australia mean it’s time to pay attention.
You’ve probably heard the term psychosocial hazards starting to pop up. These are risks to mental health and wellbeing that can arise at work—things like bullying, high workloads, poor support, or unclear role expectations.
From 2023, managing these risks is no longer just a “nice-to-have”—it’s a legal requirement.
Here’s a straightforward breakdown of what’s changed, what you’re now required to do as a business owner or manager, and where to start.
What are psychosocial hazards?
Psychosocial hazards are aspects of work that can cause psychological harm. They include things like:
- Excessive or prolonged job demands
- Low job control (little say over how or when work is done)
- Poor support from managers or colleagues
- Workplace conflict, harassment, or bullying
- Unclear roles or constant change without communication
These kinds of pressures, if unmanaged, can lead to stress, burnout, anxiety, and depression, and ultimately increase turnover, absenteeism, and workplace accidents.
What’s changed in the law?
Safe Work Australia has updated the Model Work Health and Safety (WHS) Regulations to specifically include psychosocial hazards. This means that, under WHS law:
- You must eliminate or minimise psychosocial risks in the same way you do physical risks
- You’re expected to take reasonable steps to identify, assess and control these risks
- Not managing these risks could lead to legal consequences—just like ignoring physical safety hazards
Many states and territories, including NSW, QLD, SA, ACT, TAS and NT, have already adopted these changes. Victoria and Western Australia have similar duties under different legislation, and the expectations are the same: mental health and wellbeing are a work health and safety matter.
What does this mean for small businesses?
If you’re thinking, “But I don’t have a safety officer or big HR team…”—you’re not alone. The law recognises that small businesses may have different capabilities, but the duty of care still applies.
Here’s what you should be doing:
1. Identify potential psychosocial hazards
Think about the aspects of your workplace that could be putting mental strain on your team. This could be anything from understaffing, poor communication, lack of training, or workplace tension.
2. Consult with your workers
Ask your team what’s working and what’s not. They’re the best source of information about risks you may not see. This doesn’t need to be formal—team meetings, 1:1 chats, or anonymous surveys can all be useful.
3. Assess and manage the risks
Once you know the main pressure points, look for practical ways to reduce them. This might mean setting clearer priorities, improving team communication, checking in more regularly, or adjusting workloads.
4. Document your actions
Even simple notes on what you’ve identified, what you’ve done about it, and how you’re monitoring things can help demonstrate that you’re meeting your obligations.
What if you don’t get it right?
The intention behind these laws isn’t to catch businesses out—it’s to protect people. But failing to act on known psychosocial risks can lead to:
- Worker’s compensation claims
- Fines or penalties
- Damaged reputation and loss of trust
Being proactive doesn’t just keep you compliant—it shows your team you care about their wellbeing, which leads to better performance, engagement, and retention.
There are free resources available through your state’s work health and safety regulator, or Safe Work Australia’s website. Or, if you’d like tailored help for your business, we’re here to support you.
Your legal duties are important—but creating a safe, respectful, and mentally healthy workplace is about more than ticking boxes. It’s about building a business where people can thrive—and where issues are addressed before they become problems.
By taking small steps now, you’re not just protecting your business—you’re investing in your team.