Victoria has entered a new chapter in workplace safety, with fresh regulations coming into effect today that formally recognise psychological health as a core employer responsibility. The Occupational Health and Safety (Psychological Health) Regulations 2025 now apply to every Victorian workplace, creating a clearer framework for identifying and managing psychosocial hazards just as rigorously as physical risks.
For an industry like construction built on complex environments, tight schedules, high-pressure decision-making, and diverse workforces the shift is significant. It signals a broader national direction and reflects the work already underway across building companies to create safer, more resilient teams.
These regulations do not change the obligation to protect workers from psychological harm. That duty has existed for years. What today’s change does is provide structure, definitions, and a consistent set of expectations for what “safe” looks like in practice.
Victorian Deputy Premier and Minister for WorkSafe and the TAC, Ben Carroll, says the new rules bring long-needed clarity. “Victorian workers deserve better than to face risks to their mental health at work. Starting today, these new regulations make it clear that employers must take practical steps to prevent psychosocial risks and keep their workers safe from both physical and psychological harm,” he said.
Minister for Mental Health, Ingrid Stitt, echoed this message, reinforcing that psychological safety is no longer a “nice to have” but a legislative requirement. “These new regulations make it very clear to every employer that they have a responsibility to provide their staff with a safe and mentally healthy workplace that is free from psychological harm.”
As the industry continues to evolve with increasing focus on wellbeing, culture, and retention the regulations provide a framework builders and trades have already been moving toward.
Why the Change Was Needed
Psychosocial hazards are not new, but the formal recognition of them inside the OHS framework brings them into the spotlight in a way the construction sector has been anticipating.
Across Australia, issues like bullying, aggression, sexual harassment and exposure to traumatic events have been documented in WorkSafe case files, union submissions, research programs and advocacy campaigns. These hazards can result in serious psychological injuries, which often take longer to recover from than physical injuries.
Data from WorkSafe Victoria highlights the scale of the challenge. Only 42 per cent of workers who experienced a mental injury returned to work within six months last financial year. In comparison, 75 per cent of workers with physical injuries returned in that timeframe. The personal impact is significant, and so is the impact on businesses, projects and workforce capability.
Victoria’s move brings the state into alignment with similar frameworks already adopted in other states and territories. It also supports national efforts to create more consistent safety expectations across industries and jurisdictions.
For builders, suppliers and tradespeople, the regulations are another step in the broader shift toward safer, healthier and more sustainable working environments something many in the industry have been advocating for.
What the Regulations Actually Do
The new regulations don’t introduce a new type of liability. Instead, they clarify the obligations employers already have under the Occupational Health and Safety Act to maintain workplaces that are safe and without risk to health.
Key elements include:
Clear definitions of psychosocial hazards.
This provides consistency for employers managing risks like bullying, extreme work demands, exposure to traumatic materials, violence, aggression and role conflict.
Expanded requirements to identify, eliminate or control psychosocial risks.
Employers must follow a process similar to that used for physical hazards.
A structured approach to risk management.
WorkSafe Victoria has released a compliance code to guide workplaces through hazard identification, risk assessment and control implementation.
Supporting tools and templates.
These include an optional prevention plan template that helps employers structure their approach and demonstrate compliance.
Many building companies, especially those working on Tier 1 and major government projects already use similar structures through safety management plans, site systems, toolbox meetings and internal HR processes. The new regulations align with those existing approaches.
Consultation and Industry Input
To form the final regulations, WorkSafe and the Victorian Government undertook extensive consultation across the community. Employer groups, unions, multicultural organisations and industry bodies contributed insights that helped shape the final wording.
This engagement echoes a trend across the construction sector: the push for more open conversations about the realities of work and the challenges teams face.
Organisations like TIACS, which supports mental health conversations in the trade and construction workforce, and industry campaigns such as Mates in Construction are examples of how the sector has been steadily building momentum toward better mental health outcomes. The new regulations align with that cultural shift.
What It Means for Builders, Trades and Suppliers
Construction workplaces cover a spectrum: from small residential builders with five-person teams through to major commercial contractors managing hundreds of employees and subcontractors on rotating shifts.
The psychological hazards they face vary, but the new framework applies to all of them.
Here are some of the areas that may be influenced by the new regulations:
1. Workload and Scheduling
Extreme job demands, such as long hours, inadequate staffing, or unmanageable timelines are recognised as psychosocial hazards. The regulations outline the importance of identifying when workload pressure may lead to harm.
2. Team Culture and On-Site Behaviour
Bullying, harassment and aggression are clearly defined hazards. Many construction businesses already have codes of conduct and behavioural policies in place. The regulations help reinforce those expectations.
3. Exposure to Traumatic Events
Accidents, critical incidents and the emotional load of high-risk work can have lasting impacts. The new framework lays out a clearer process for assessing and managing these risks.
4. Role Clarity
Role conflict and unclear responsibilities are recognised contributors to psychological stress. Builders who already emphasise communication, clear scopes and structured inductions are operating ahead of the curve.
5. Communication Across Subcontractor Networks
Given the layered nature of construction sites, communication is a major factor in creating psychologically safe environments. The supporting compliance code may help multi-business sites create more consistent approaches.
What the regulations do not do is prescribe a one-size-fits-all model. Instead, they outline options and provide a flexible structure that businesses can adapt based on their workforce, project type and environment.
Support for Employers
To help employers navigate the new requirements, WorkSafe Victoria has released:
- A formal compliance code offering practical guidance
- Examples of risk management processes
- Case studies and hazard identification tools
- An optional Psychosocial Hazard Prevention Plan template
Further resources are available at worksafe.vic.gov.au/psychological-health.
For many businesses, the new regulations may simply formalise processes they already have in place. For others, this will be an opportunity to revisit policies, re-engage with staff and strengthen systems.
Either way, the industry stands to benefit from clearer expectations and better tools.
A Positive Step for the Sector
The Good Builder exists to raise the bar and highlight the good happening across Australia’s building industry. Safety and wellbeing are central to that mission.
These new regulations reflect a broader movement: one where the industry is becoming more open, more collaborative and more committed to supporting its people.
While the regulations come from government, the real change will continue to be driven by the builders, supervisors, apprentices, business owners, suppliers and trades who keep pushing for better.
By recognising psychological health as a core part of workplace safety, Victoria has added momentum to a shift already happening on the ground, a shift towards healthier teams, safer sites and a stronger industry for everyone.
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