Civilian employees within the Department of Defence have submitted the highest number of workers' compensation claims across the entire Australian Public Service this year, with psychological stress accounting for the majority of cases.
Defence Leads in Psychological Injury Claims
Between July 1 and October 22, 2025, Defence staff lodged a total of 85 claims with the national work health and safety regulator, Comcare. A staggering 59 of these claims were specifically for psychological injuries, as revealed in a departmental answer to an opposition question on notice.
This surge in mental health claims coincides with concerning internal survey data. The most recent Australian Public Service Commission census shows that only 65 per cent of Defence's public servants believe the agency cares about their wellbeing. Furthermore, nearly 40 per cent reported their workload as being slightly above capacity.
Major Overhaul Looms for Defence Department
The figures emerge as the Defence Department prepares for its most significant restructuring in over half a century. In early December, Defence Minister Richard Marles announced a plan for 2026 that will see three internal agencies merged into a new entity to address major cost overruns and project delays.
This transformation is set against a backdrop of significant growth, with the department's public service headcount projected to exceed 20,000 in the coming years. The pressure of this expansion and restructuring is seen as a potential contributing factor to the workplace stress captured in the claims data.
Services Australia and Other Agencies Follow
Close behind Defence in the number of compensation claims was Services Australia, with 84 claims lodged between July 1 and September 30, 2025. Approximately 38 per cent of these were stress-related. By the end of November, more than 40 of the injured staff had returned to work.
Services Australia, along with the Australian Taxation Office, operates under a unique delegated claims management system, handling compensation claims in-house rather than through Comcare. This system has faced criticism, with reports indicating hundreds of Services Australia workers have had to appeal to the Administrative Review Tribunal after initial claim rejections, with half subsequently overturned.
A major government review has recommended scrapping this delegated system, citing concerns it creates an adversarial dynamic between injured workers and their employers.
The Department of Home Affairs recorded the third-highest number of claims, with 25 staff lodging claims in the financial year to date. Of these, nine related to mental stress and ten to "body stressing" from repetitive work. The National Disability Insurance Agency followed closely with 24 claims.
National Trend Shows Rising Psychological Claims
Comcare data confirms a worrying national trend across the Australian Public Service. Accepted claims related to mental stress have risen from 30.6 per cent in the 2023-24 financial year to 36.9 per cent by September 2025. Psychological injuries now account for one-third of all claims lodged by public servants.
The regulator has identified bullying, harassment, and work pressure as the primary causes behind these mental stress claims. This data paints a clear picture of the escalating mental health challenges within key government agencies, prompting calls for more effective wellbeing strategies and support systems as large departments like Defence undergo profound change.
