The Minns Labor Government has today introduced a new workers compensation bill into the Legislative Assembly to progress urgently needed reform.
The Government's first bill passed the lower house in early June but has since been blocked by the Liberal Party, Mark Latham and the Greens, with no timeline on when it will return to the Legislative Council.
Every day of delay means the system deteriorates further, and the lack of certainty only compounds the pressure being felt by businesses and community groups across NSW.
- Without reform, 340,000 NSW businesses will have to pay a 36 per cent increase in premiums over the next three years - even if they have no claims against them.
- Just 50 per cent of workers with a psychological injury typically return to work within a year, compared to 95 per cent of workers with a physical injury.
- The private sector scheme is going backwards by $6 million per day. It is soon expected to hold only 80 cents in assets for every dollar it will have to pay in claims.
The Government's preferred option is for Parliament to vote on the original bill. However it is not prepared to let the uncertainty carry on indefinitely.
Groups supporting the reform include:
- Disability service providers
- Not-for-profit charities including The St Vincent de Paul Society and Mission Australia
- The NSW Council of Social Services
- Royal Australian College of GPs
- The Pharmacy Guild of Australia
- Australian Childcare Alliance NSW
- Business Council of Australia and Business NSW
- Australian Hotels Association
- Restaurant & Catering Australia
- Clubs NSW
Treasurer Daniel Mookhey said:
"Small businesses and disability service providers face premium hikes that will force many to close their doors.
"The lack of certainty is creating even more pressure on businesses who need an urgent resolution.
"I don't think it is unreasonable for those businesses and disability organisation to simply say to the Parliament, do your job."
Industrial Relations Minister Sophie Cotsis said:
"The Minns Labor Government is committed to strengthening a culture of prevention, early intervention, recovery and effective return to work through a series of reforms.
"These include major reforms to SafeWork NSW, including investing in more inspectors to focus on psychosocial harm prevention and industrial relations reforms that establish a 'stop bullying' jurisdiction.
"Additionally, we have amended the iCare Act to include a principal objective focused on promoting early and appropriate treatment and care for injury and illness. This aims to optimise recovery and support return to work activities to ensure a sustainable compensation system.
"We particularly acknowledge the trade union movement, as we work together to reach our shared goal of a better, more sustainable system for injured workers."
Customer Service and Digital Government Minister Jihad Dib said:
"We are looking at the workers compensation scheme holistically to ensure those with the greatest need continue to receive support and those who can return to work are assisted to do so.
"Our reforms are focused on making the system sustainable for workers, driving greater effort on preventing injury, encouraging retraining and helping people return to work. Standing in the way of these reforms short-changes workers and businesses."
