Queensland IR Bill 2026 Key Changes for Employers

3 Minute read 22.10.2026 Leyla Dixon, Sara McRostie, Cathy Lyndon, Sarah Smith, Geraldine Matthews

The Queensland Government has introduced a wide-ranging bill that rewrites key parts of the state's workers' compensation and industrial relations rules. Submissions close on 2 November 2026 and (if passed) key provisions commence on 1 January 2027.

Key takeouts

The new bill changes how psychiatric injury claims are assessed, tightens fraud rules, speeds up (and shortens) review timeframes, and makes it easier to cash out long service leave and check a candidate's workers' compensation claims history.

Public sector employers also face new wage-setting rules, a whistleblower regime, and significant changes to bargaining and industrial action powers.

Following the closure of submissions, a Committee report is due on 27 November 2026. Employers should have the changes on their radar now for policy, process and budgeting.

The Industrial Relations and Other Legislation Amendment Bill 2026 (Qld) was introduced on 14 October 2026. Submissions close on 2 November 2026, with a Committee report due on 27 November 2026. Key provisions commence on 1 January 2027.

The Queensland Government has introduced a wide-ranging bill that rewrites key parts of the state's workers' compensation and industrial relations rules. If passed, it will change how psychiatric injury claims are assessed, tighten fraud rules, speed up (and shorten) review timeframes, and make it easier to cash out long service leave and check a candidate's workers' compensation claims history. Public sector employers also face new wage-setting rules, a whistleblower regime, and significant changes to bargaining and industrial action powers. Here's the full picture, along with our list of key action items for employers to take assuming the bill passes in its current form.

Workers' Compensation and Rehabilitation Act 2003 (Qld)

Higher bar for psychiatric injury: Employment must be the 'major significant contributing factor' (up from 'a significant contributing factor'), bringing Queensland into line with New South Wales and Victoria.
Stronger reasonable management action defence: Misconduct investigations will be expressly included, while minor errors in management action will not defeat the exclusion.
Review/appeal timeframes reshuffled: The window for review applications will be cut from 3 months to 20 business days, while the appeal period will increase from 20 to 30 business days.
Fraud penalties doubled: The maximum penalty will increase from 5 to 10 years for fraud, and from 1 to 2 years for false or misleading information. Compensation and entitlements may also be suspended while fraud is investigated.
Pre-employment WorkCover checks: Prospective employers may obtain a candidate's claims history summary with their consent, creating a new exception to the current restriction on using workers' compensation documents for employment purposes under s 572A.
Location flexibility: Queensland residency requirements removed for rehabilitation/return to work coordinators and certain self-insurer functions.

Industrial Relations Act 2016 (Qld)

Long service leave cash-out: The current Commission application pathway will be removed. Instead, cashing out will be simplified and only require a signed agreement between the employer and employee, with corresponding changes to the building and construction, community services and contract cleaning portable long service leave schemes.
Legal representation rules simplified: The current rules will be replaced with a single test across tribunals, allowing representation by consent, by leave, or for offence prosecutions. Unregistered entities and agents will also be able to represent parties, provided they are unpaid.
Wider costs powers: Costs will be able to be awarded against a party, not just a representative, where unreasonable acts or omissions cause another party to incur costs.
Broader dismissal powers: The Queensland Industrial Court and Commission will gain new grounds to dismiss proceedings, including where they are frivolous or vexatious, a party unreasonably fails to discontinue after settlement, or directions are not followed. They will also be able to prevent further applications in appropriate cases.

Industrial Relations Act 2016 (Qld) – Changes applicable to Queensland public sector employers only

Wage-setting aligned to federal system: Full Bench will be required to issue an annual Queensland minimum wage ruling adopting the Fair Work Commission's review, unless an objection is made.
Flow-on provisions removed: Certified agreement and public sector directives will no longer flow into modern awards.
New whistleblower protection scheme: Disclosures about registered organisation misconduct will be protected under a new regime, backed by investigation powers, an offence for reprisals and statutory right to compensation, responding to the CFMEU Commission of Inquiry.
Direct balloting: Employers will be able to direct-ballot employees on a proposed agreement once at least one employee organisation has agreed.
Minister's termination power: The Minister will have a standalone power to end protected industrial action threatening safety, the economy, essential services or the public interest, similar to the Commonwealth Minister's power under the Fair Work Act.
Payment during industrial action: Employees will not be entitled to pay for full work stoppages, while proportionate pay cuts will be allowed for partial industrial action, subject to notice.
Other industrial action changes: The notice period for protected industrial action will increase to 3 days; new unprotected action triggers; Electoral Commission may run protected action ballots.
Fit and proper person test: Authorised officers will be subject to a new eligibility test when applying for a right-of-entry permit, including any CFMEU disciplinary history.

What employers need to do now

Review psychiatric injury risk: Audit how management action (especially performance management and misconduct investigations) is documented, since the higher threshold and strengthened defence both turn on evidence.
Prepare for shorter review timeframes: Review injury management processes to ensure teams are ready to work within the new 20-business day review window.
Update long service leave processes: Prepare a LSL cash-out agreement template, and consider recommending employees obtain financial advice before entering into a cash out agreement.
Refresh recruitment practices: Consider how claims history checks and candidate consent will fit into recruitment processes.
Calendar the deadlines: Submissions close 2 November 2026 and key provisions are slated to start 1 January 2027. Employers should have the changes on their radar now for policy, process and budgeting.

What Queensland public sector employers also need to do now

Prepare for the whistleblower regime: Review policies and training so staff understand the new protections for disclosures about registered organisation misconduct, including the protections against reprisal and new remedies.
Review wage-setting and award alignment: With flow-on provisions repealed and an annual state wage ruling introduced, check how certified agreement and award rates will be set going forward, and whether to object to a ruling if one does not suit your workforce.
Reassess bargaining strategy: Factor the new direct balloting power into negotiation planning where agreement with all unions is proving difficult.
Update industrial action protocols: Consider the Minister's new termination power and the pay-reduction rules for partial industrial action into your contingency planning and payroll processes.
Review right-of-entry processes: Make sure HR and industrial relations teams are across the new fit and proper person test for authorised officers and any implications for right of entry.