New Funding Structure Boosts Accountability for WorkSafe in Safety Reforms

Minister van Velden said the MCA responds directly to these recommendations, ensuring WorkSafe’s financial structure is aligned with broader Health and Safety System reforms currently underway.

The Government has introduced a major shift in the way WorkSafe New Zealand is funded, aiming to strengthen transparency, sharpen performance monitoring, and enhance public confidence in the country’s primary health and safety regulator. Workplace Relations and Safety Minister Brooke van Velden confirmed that WorkSafe’s funding will now sit within a multi-category appropriation (MCA)—a move designed to give policymakers and the public clearer visibility of how resources are allocated and what outcomes are being delivered.

According to the Minister, transitioning WorkSafe into an MCA will allow the organisation to demonstrate more clearly how taxpayer dollars are being spent, what specific activities are funded, and the extent to which these activities contribute to improved health and safety outcomes across the country. While WorkSafe has made progress under its updated operating model, the Minister noted that the new funding structure will deepen fiscal discipline and support stronger evidence-based decision-making.

For several years, WorkSafe has faced scrutiny over its ability to quantify the cost-effectiveness of its operations. This lack of clarity made it challenging for the Government to properly assess whether particular initiatives were delivering value, or whether additional funding requests were justified. The recent SageBush independent review, commissioned to examine WorkSafe’s financial systems and performance settings, highlighted significant gaps—most notably the absence of a clear framework to guide resource allocation. This hindered consistent prioritisation of activities and obscured performance measurement.

Minister van Velden said the MCA responds directly to these recommendations, ensuring WorkSafe’s financial structure is aligned with broader Health and Safety System reforms currently underway. She emphasised that this change does not reduce or increase overall funding levels; rather, it ensures existing funds are used more strategically and transparently.

As part of the restructure, the Government has confirmed that WorkSafe’s funding will now be divided across five distinct categories, each representing a core regulatory function:

• Engaging to Support Best Practice in Work Health and Safety

• Enforcing Work Health and Safety Compliance

• Authorising and Monitoring Work Health and Safety Activities

• Energy Safety

• Major Hazard Facilities

These new categories reflect a deliberate shift in focus toward engagement, guidance, and industry support, complementing the wider reform programme’s goals of building a more collaborative and prevention-focused work health and safety system. While compliance and enforcement remain essential, the Government is signalling a greater emphasis on education, partnership, and improving sector capability, especially in high-risk industries.

Minister van Velden said she now has greater confidence in how WorkSafe distributes its resources and evaluates the impact of its programmes. With clearer performance expectations and reporting structures, the organisation is positioned to deliver more measurable results and regain trust as a proactive, modern regulator.

The Government argues that these changes will help ensure WorkSafe is equipped to respond to emerging risks, deliver consistent regulatory oversight, and support businesses and workers through clearer, more accessible guidance. As health and safety challenges evolve—with technological shifts, workforce changes, and increasing complexity in major hazard environments—the reform aims to ensure WorkSafe remains a fit-for-purpose regulator with strong accountability and a focus on outcomes, not just activity.