Analysis by icare shows workers compensation amendments co-authored by the Liberal Party and Mark Latham would cut off almost all victims of harassment, bullying and vicarious trauma, and still deliver higher premiums to NSW businesses.
The 19-page report was prepared at the request of Shadow Treasurer Damien Tudehope to assist the Opposition to develop their policy. NSW Treasury provided it to Mr Tudehope on 20 June 2025.
The analysis of the Tudehope-Latham amendments was prepared by icare's chief actuary and underwent a technical review and internal peer review.
It shows:
- Sexual harassment, racial harassment and bullying would be effectively extinguished.
The Tudehope-Latham plan puts the burden on victims to prove that their perpetrator intended to harm them. The report cites: "The need to prove intent of the perpetrator to harm would effectivey remove all types of bullying and harassment from the schemes."
- Businesses will pay higher premiums.
By opposing the proposed threshold to access lifetime income support, the Tudehope-Latham amendments will leave the private sector's workers compensation scheme $800 million worse off by 2029 compared to the governments plan, forcing 340,000 NSW businesses to pay the highest premiums in Australia.
- Nurses, childcare protection workers and other workers repeatedly exposed to trauma will lose protection
Workers who are repeatedly exposed to the trauma of others will no longer be eligible for compensation. Icare found "Social workers and Welfare support workers indentified as key high risk industries. These industries represented 6 per cent of the total psychological claims."
- Workers regularly exposed to excessive work demands will be barred from making a claim.
Workers who have been subjected to demands beyond the requirements expected of their roles, which is repeated or persistent, and not reasonable in all circumstances, will be cut off from the system entirely.
Whilst Mr Tudehope and Mr Latham are continuing to block reform, the workers compensation system remains under intense pressure.
- Just 50 per cent of workers with a psychological injury can 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.
- Absent 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.
The government's bill, which passed the Legislative Assembly in early June, has broad support from business groups, the not-for-profit sector and disability providers.
Treasurer Daniel Mookhey said:
"Mr Tudehope's and Mr Latham's plan is the worst of both worlds. Workers get less protection. Businesses will have to pay higher premiums.
"Worse, the Tudehope-Latham amendments will force every victim of sexual harassment, racial harassment and bullying making a claim to prove their perpetrator deliberately wanted to hurt them.
"Small businesses and injured workers deserve better. Every day Mr Tudehope and Mr Latham block reform, the scheme gets worse.
"The sooner we enact reform, the sooner we can get on with stopping psychological injuries in the workplace, rather than expending vast sums compensating for injuries which could have been prevented."
