Victoria’s New Psychological Health Regulations: What They Mean for Your Organisation
From 1 December 2025, Victoria will introduce new Occupational Health and Safety (Psychological Health) Regulations requiring employers to treat psychosocial hazards with the same seriousness as physical risks. These changes bring the state into alignment with the rest of Australia and represent one of the most significant developments in workplace regulation in recent years (WorkSafe Victoria, 2025).
We see the upcoming changes to workplace law in Victoria as particularly important. They represent not only a compliance obligation, but also a chance to accelerate the cultural and leadership work we are so passionate about.
Understanding the Legislative Change
Psychosocial hazards, such as bullying, sexual harassment, aggression, violence, or exposure to trauma, are well recognised as workplace risks, yet until now they have not been regulated in Victoria under OH&S law in the same way as physical hazards. That changes in December.
Under the new regulations, employers will be legally obliged to:
- Identify and assess psychosocial risks in their workplace.
- Implement and monitor controls that are effective and proportionate.
- Consult with employees on measures to address risks.
- Engage with a new Compliance Code issued by WorkSafe Victoria, which will provide practical guidance and tools (WorkSafe Victoria, 2025).
While prevention plans and de-identified reporting will not be mandatory, the legislation strongly encourages employers to go beyond the minimum standard, with WorkSafe providing non-statutory guidance and templates to support best practice (MinterEllison, 2025).
Why This Matters
This is more than compliance. As MinterEllison observed, the new regulations elevate mental health to the same plane as physical health in occupational safety law. For boards, executives and senior leaders, this means governance expectations will sharpen. It will no longer be enough to rely on policies or broad statements of intent. Organisations will need to demonstrate real, active processes to assess, manage and reduce psychosocial risks.
Clayton Utz (2025) describes this as a “gamechanger” for organisations, not just because of the compliance implications, but because it requires a shift in culture, leadership and everyday behaviour. The law is catching up to what people leaders have long known: psychological safety is not an optional extra. It is central to wellbeing, performance and organisational success.
time2talk Leadership’s Role
At time2talk Leadership, we live and breathe psychological safety. Our national team has already been working with organisations across Australia where similar legislation is in force, and we are excited to strengthen that experience in Victoria.
What we have learned through this work is that compliance cannot succeed if it is confined to paperwork or policies. The real challenge is ensuring leaders and teams know how to recognise risks, respond constructively, and embed healthy workplace behaviours. That is why our programs are designed to bridge the gap between legal obligations and everyday practice.
We support organisations through:
- Leading Positive Workplace Behaviour – training leaders and employees to set expectations, model respect, and respond effectively to issues.
- Creating a Psychologically Safe Workplace – Building cultures where people feel safe to speak up, contribute ideas, and raise concerns without fear.
- Leading Wellness – equipping leaders with the tools to proactively support mental health, manage stress factors, and strengthen team resilience.
- Vision and Values Alignment – partnering with organisations to define, communicate and embed values that underpin culture and guide behaviour.
- eLearning– flexible, scalable learning resources to reinforce training and make psychological safety a daily practice.
- Executive and Board Workshops – unpacking governance obligations and strengthening accountability at the top.
Our workshops are highly practical and experiential, we facilitate rich discussions using real-life case studies and scenarios. The content is grounded in current research, drawing on insights from Amy C. Edmondson, Novartis Professor of Leadership and Management at Harvard Business School (known for her “three stages of psychological safety”), and Timothy R. Clark, Oxford-trained social scientist, organisational consultant and author of The Four Stages of Psychological Safety. Together, these frameworks help us create a clear, actionable model for teams that’s both accessible and results-driven.
Why We Care
For time2talk Leadership, this work is not just about supporting compliance. It is about creating workplaces where people feel safe, respected and able to thrive. The benefits of embedding psychological safety and positive workplace practices are significant and well-documented:
- Higher employee retention – people stay where they feel valued and safe.
- Better collaboration – teams with trust and openness work more effectively together.
- Stronger performance – psychological safety drives innovation, problem-solving and productivity.
- Reduced absenteeism and presenteeism – employees are healthier and more engaged.
- Lower risk of conflict and misconduct – proactive training reduces incidents of bullying, harassment and aggression.
- Improved reputation and employer brand – organisations known for safe cultures attract and keep talent.
- Greater adaptability during change – psychologically safe workplaces handle uncertainty, restructures and growth more effectively.
- Alignment between culture and compliance – values are lived, not just written in policy.
This is why we are passionate about supporting Victorian organisations during this time. The new regulations provide a legal foundation, but the opportunity is much greater: to transform culture, strengthen leadership and build resilient workplaces that are ready for the future.
Looking Ahead
The introduction of the new Occupational Health and Safety (Psychological Health) Regulations is a defining moment for Victorian organisations. It signals a future where psychological safety is not an optional aspiration, but a core legal and cultural responsibility.
At time2talk Leadership, we are ready to help you lead this change with confidence. Whether through executive workshops, leadership programs, frontline training or eLearning, we can equip your people to turn compliance into culture, and culture into competitive advantage.
If you would like to discuss how these changes may impact your organisation, and how we can support your leaders and teams, we would love to talk.
As part of our commitment to mental health, during October time2talk Leadership will donate 5% of proceeds from any mental health or wellness program booked to Mental Health Foundation Australia. It’s our way of ensuring that as we help organisations build psychological safety, we’re also giving back to the broader community and supporting vital work in mental health.
Note: This article provides general commentary only and does not constitute legal advice. For legal advice specific to your organisation, you should consult a legal professional.
References
Clayton Utz. (2025) Victoria’s new Psychosocial Regulations: key changes and what employers need to know. Available at: https://www.claytonutz.com/insights/2025/march/victorias-new-psychosocial-regulations-key-changes-and-what-employers-need-to-know
MinterEllison. (2025) New psychosocial regulations announced for Victoria. Available at: https://www.minterellison.com/articles/new-psychosocial-regulations-announced-for-victoria
WorkSafe Victoria. (2025) Occupational Health and Safety (Psychological Health) Regulations. Available at: https://www.worksafe.vic.gov.au/occupational-health-and-safety-psychological-health-regulations
Edmondson, A.C. (2025) Faculty Profile: Amy C. Edmondson, Harvard Business School. Available at: https://www.hbs.edu/faculty/Pages/profile.aspx?facId=6451
Clark, T.R. (2020) The Four Stages of Psychological Safety: Defining the Path to Inclusion and Innovation, ReadHowYouWant. Available at: https://openlibrary.org/books/OL37804907M/The_4_Stages_of_Psychological_Safety
