Victoria Psychosocial Hazard Laws 2025: What Family and Small Businesses Need to Know
- Future Accounting
- 1 day ago
- 5 min read
Written by: Chris Mulcahy
Preparing Your Family Business for the Victoria Psychosocial Hazard Laws 2025
The Victoria psychosocial hazard laws 2025 come into effect on 1 December 2025, and they mark one of the most significant updates to workplace safety in decades.
For the first time, mental health risks must be managed with the same seriousness as physical hazards and many employers are not yet aware of what’s required.
For family businesses, farms and small enterprises across Victoria and the NSW border regions, these changes create both challenges and opportunities. With the right approach, you can improve communication, strengthen your team culture and ensure long-term business resilience.
Let’s walk through what’s changing, how it affects family and small businesses, and how you can prepare confidently.
Understanding the Victoria psychosocial hazard laws 2025
The new laws require employers to proactively manage psychological health risks as part of their core OHS responsibilities. Under the Victoria psychosocial hazard laws 2025, all employers must:
Identify psychosocial hazards in the workplace
Assess the level of risk they create
Implement appropriate controls to eliminate or minimise those risks
Review controls when circumstances change
Consult with workers throughout the process
Psychosocial hazards include issues like overwhelming workloads, unclear roles, poor communication, conflict, fatigue, lack of support, bullying, harassment, traumatic events and poorly managed organisational change.
Instead of reactive handling or informal solutions, the new laws require structured, documented, ongoing risk management.
Why the new laws matter for small business, agriculture and family enterprises
Many small and family-run enterprises rely heavily on trust, informal systems, flexibility and good intentions. While these strengths remain important, the Victoria psychosocial hazard laws 2025 introduce a more consistent, transparent framework for managing mental health risks.
For your business, this means:
Clearer job roles and responsibilities
More consistent communication
Fairer and more manageable workloads
Stronger support structures
Clear pathways for raising and resolving issues
Improved governance and documentation
Rather than adding unnecessary red tape, the laws are designed to help businesses build safer, more sustainable workplaces. For farms and regional businesses, where work pressures can be seasonal and unpredictable, taking early steps can help prevent stress, conflict and burnout.
How family members employed in a family business are affected
One of the biggest changes relates to the involvement of family members working in the business. The Victoria psychosocial hazard laws 2025 treat family employees exactly the same as any other worker.
This means many common family-business dynamics now fall under the category of psychosocial risk.
Blurring of roles
Family members often take on multiple roles at once: parent, child, manager, successor, sibling and employee. This can lead to confusion, conflict or unrealistic expectations. The new laws classify this as a role clarity hazard, requiring clear definitions and boundaries.
Family conflict spilling into work
Business disagreements or succession conversations can create stress for everyone involved. Under the new regulations, conflict between family employees is considered a psychosocial risk that must be proactively managed.
Pressure to “push through” because it’s family
It’s common for family members to work longer hours, skip breaks or avoid raising concerns. The law expects employers to monitor workloads, fatigue and support levels for all workers.
Limited reporting pathways
Family workers are less likely to report issues when their supervisor is also a relative. You’ll now need safe, neutral reporting options even if that means involving an external advisor.
Succession planning stress
Leadership transitions, ownership shifts and decision-making discussions can create significant strain. These are now recognised hazards requiring structured communication and planning.
Addressing these risks supports both the wellbeing of the family and the long-term health of the business.
What is happening in other states
Victoria is the last major jurisdiction to formalise psychosocial hazard regulations, bringing it into alignment with other states and territories.
NSW, QLD, ACT, TAS and SA already follow the Model WHS Laws, which include psychosocial risk obligations.
Western Australia introduced psychosocial regulations in 2022.
Northern Territory applies psychosocial requirements under the harmonised WHS framework.
The introduction of the Victoria psychosocial hazard laws 2025 means businesses operating across states can now apply clearer and more consistent safety standards.
Practical steps to stay compliant
Preparing for the Victoria psychosocial hazard laws 2025 doesn’t have to be complicated. Start with these practical steps:
1. Conduct a psychosocial risk review
Examine workload pressures, communication gaps, family-role tensions, job design issues and problem areas.
2. Consult with your team
Talk openly with workers including family members, about what’s working well and what needs improvement.
3. Strengthen your systems
Implement higher-level controls such as clear position descriptions, structured decision-making, conflict-resolution pathways and regular check-ins.
4. Train your workers and managers
Give your team the tools to recognise, report and respond to psychosocial hazards.
5. Document decisions and actions
Keep clear records to demonstrate compliance and support future improvements.
With the right systems in place, these steps not only meet legal requirements but also help build a more stable and positive workplace culture.
Final thoughts and how we can help: Aligning with your Future Prosperity Process
The Victoria psychosocial hazard laws 2025 are more than just compliance, they align closely with our Future Prosperity Process: Preserve, Protect, Prosper.
Preserve
Proactively managing psychological health preserves the wellbeing of your team, safeguards family relationships and maintains the human foundations of your business.
Protect
Clear systems, fair workloads and structured communication protect you from conflict, burnout, costly disruptions and regulatory action.
Prosper
A supported, safe and cohesive team creates the ideal environment for long-term growth and success. Healthy workplaces outperform stressed workplaces, every time.
We know these changes can feel overwhelming, especially for family businesses managing both personal and professional pressures. That’s why we’re here to support you every step of the way.
Contact us today to review your Future Prosperity Process and ensure your business is fully prepared for the Victoria psychosocial hazard laws 2025. Together, we’ll preserve what matters most, protect your people and position your business to prosper.
Disclaimer
This article does not constitute financial advice and is for general information only. It does not take into account any individual’s personal objectives, situation or needs, and is not intended as professional advice. Any similarity to an individual’s personal circumstances and the examples provided in this article is purely coincidental. Any person acting upon such information without receiving specific advice, does so entirely at their own risk.
Authorisation under an Australian Financial Services Licence (AFSL) is not required in the provision of this article and the author plus Future Accounting Group Pty Ltd is not acting in its capacity as an Australian Financial Services Licence holder
Liability limited by a scheme approved under professional standards legislation.
