Workers' Compensation Reforms Announced

Law Society of NSW

Statement - President of the Law Society of NSW Jennifer Ball

Workers compensation reforms

The Law Society of NSW has today written to Members of the Opposition and the Greens NSW in the Legislative Council in anticipation of that chamber's consideration of the Workers Compensation Legislation Amendment Bill 2025.

We agree that the workers compensation scheme requires reform. However, in its current state, the Law Society is concerned that the Bill will have significant and unnecessary impacts not only liability and entitlements in relation to psychological injuries but also the operation and processes of the wider workers compensation scheme.

We continue to highlight key concerns outlined in our submission to the Inquiry, which we believe should be addressed immediately by the Legislative Council in its imminent consideration of the Bill. These concerns, include:

  • Amending the proposed Whole Person Impairment threshold to a compromise position of 20% or greater. This will help ensure persons with psychological injuries, who are severely disabled by modern community standards, can access the scheme.
  • a retrospective application of transitional provisions, which will adversely impact many workers who have engaged with lawyers to act on a claim but a not in a position to file the pre-filing statement due to legislative timeframes;
  • the adverse effects that could flow from the cessation of weekly compensation payments after 130 weeks, subject to the worker's degree of permanent impairment; and
  • practical difficulties associated with the proposed joint principal assessment process which may discourage settlement and lead to further disputes in the Personal Injury Commission.

We additionally encourage the Government to ensure that all parties in the scheme, including injured workers, continue to have access to high quality legal representation.

We participated in the unusually truncated Inquiry process provided to the Standing Committee on Law and Justice, and remain grateful for the opportunity to give evidence in that process.

Given the paucity of consultation, and the Law and Justice Committee's inability, through lack of time, to apply meaningful analysis to the voluminous evidence before it, the Law Society encourages the Government to return the Bill to the design stage. It is possible to design a nuanced and appropriate scheme that continues to provide for meritorious claims.

This would enable adequate time for meaningful consultations with a diverse range of experts and affected stakeholders and to inform a future Bill with relevant and publicly accessible data.

The Law Society looks forward to continuing conversations with the Government regarding this matter.

/Public Release. This material from the originating organization/author(s) might be of the point-in-time nature, and edited for clarity, style and length. Mirage.News does not take institutional positions or sides, and all views, positions, and conclusions expressed herein are solely those of the author(s).