Workers' compensation legislation suffers blow after key MP turns
The NSW government's contentious workers' compensation reforms has suffered another blow after an upper house committee moved to keep Treasurer Daniel Mookhey's proposed legislation in an inquiry indefinitely, with concerns the promised budgetary savings had been overhyped.
It came as Kim Garling, the inaugural independent watchdog of the workplace compensation system, said the government's argument about the need to urgently reform the scheme to ensure its sustainability was 'misplaced', saying it has 'been in deficit for most of the time it's been in existence'.
In a marked shift in his position, rogue MP Mark Latham said he was 'feeling a little misled' and 'pretty pessimistic about landing a result' given Premier Chris Minns' opposition to amendments proposed by both himself and the Coalition.
After the second day of public hearings, the seven-person Public Accountability and Works Committee resolved on Tuesday night to remain ongoing, according to two sources speaking on the condition of anonymity to detail private deliberations. Mookhey had hoped to bring the legislation back for a vote during the budget week.
The proposed reforms to the workers' compensation scheme would drastically curtail the ability of psychologically injured workers to access long-term payments, a course of action the government has characterised as imperative given the financial pressures on the budget and business premiums.
One key plank of the reforms, cutting psychologically injured workers from benefits after 2½ years unless they reached a higher, 31 per cent Whole of Person Impairment (WPI) rating, was put under the spotlight during a public hearing on Tuesday.
The second inquiry was established to allow crossbenchers to interrogate assumptions underpinning Mookhey's reforms, after the attempt to pass the bill in early June failed to garner enough support from the Coalition, Greens and crossbenchers.
Mookhey continued to make the financial case for reform during the hearing on Tuesday, warning the deficit would skyrocket to $14.6 billion by 2032 without premium hikes.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Advertiser
3 hours ago
- The Advertiser
City's most popular pool excluded as council tests the waters with $2 entry trial
IT'S the most popular watering hole in the city, but Lambton pool will be excluded from a $2 entry trial next season. While some councillors wanted to dive in the deep end with all five pools, a majority chose to test the waters at Beresfield, Mayfield, Stockton and Wallsend before taking the plunge. Lambton pool will not be included in the 2025/26 trial due to "operational and safety risks", given the already high visitation numbers each season, but will be considered for inclusion in future. Councillors also approved a free entry trial at all pools on Australia Day, but not before wading through murky waters during an almost one-hour debate on Tuesday night. Independent Cr Mark Brooker said he was disappointed Lambton pool would not be included in the trial, given 75 per cent of people who took part in community consultation said they intended to take advantage of $2 entry there. "We're delivering for only one quarter of the people who went to the trouble of engaging with us, we're only delivering for 41 per cent of pool users across the swim season that has just concluded," he said. "I don't for a moment want to risk the safety of the public, not for one moment, but I believe there are ways we could make it work." Fellow independent Cr Peter Gittins said he could not support a motion that, whether true or not, creates a perception of a "two-class society" that is both "inequitable and unfair". Lambton pool accounted for almost 60 per cent of 430,000 visitors to the city's five swimming pools last season. Its entry fee will remain at $6. According to the council, including Lambton in the trial would increase costs by an estimated $1 million each year and result in a $700,000 budget deficit. Labor Cr Elizabeth Adamczyk said Cr Gittins' suggestion excluding Lambton pool from the trial would create a two-class society was "insulting". "We have to make a choice about where our money goes within the parameters that we work in," she said. "What we have before us tonight is ... a sensible middle ground that's found a pathway forward to ensure we are actually delivering on our commitment to our communities, to create equitable, inclusive, connected and healthy communities that will have a real impact in material terms in people's lives." Greens Cr Charlotte McCabe made a move for Lambton pool to be included, but council meeting procedure meant it could only be voted on if the original motion excluding it was lost. Independent lord mayor Ross Kerridge also tried to have Lambton pool included in the original motion, but Labor Cr Declan Clausen argued it was a "direct negative" of the proposal he put forward, so it could not be included. "I would like to see Lambton included in this trial, but we do have a responsibility as a group of councillors not just to listen to what we see, but also to consider the expert advice that we are given," Cr Clausen said. "What we are voting on tonight is a targeted, financially responsible and community-backed initiative to trial $2 pool entry at four of our inland pools. It's not the end of the conversation; it's just the beginning. Cr Clausen said councillors could either vote for a "meaningful improvement" to pool access or hold out for the perfect solution that may never arrive. "I ask each of you not to make the perfect the enemy of the good," he said. The trial is expected to cost the council $900,000 in 2025/26 and a further $200,000 in enhanced security at all pools. According to the council, the trial will increase the annual spend on pools to $4 million. City of Newcastle chief executive Jeremy Bath has the power to terminate the trial before the end of the 2026 summer swim season, but only if "significant risks" eventuate that cannot be "sufficiently controlled". IT'S the most popular watering hole in the city, but Lambton pool will be excluded from a $2 entry trial next season. While some councillors wanted to dive in the deep end with all five pools, a majority chose to test the waters at Beresfield, Mayfield, Stockton and Wallsend before taking the plunge. Lambton pool will not be included in the 2025/26 trial due to "operational and safety risks", given the already high visitation numbers each season, but will be considered for inclusion in future. Councillors also approved a free entry trial at all pools on Australia Day, but not before wading through murky waters during an almost one-hour debate on Tuesday night. Independent Cr Mark Brooker said he was disappointed Lambton pool would not be included in the trial, given 75 per cent of people who took part in community consultation said they intended to take advantage of $2 entry there. "We're delivering for only one quarter of the people who went to the trouble of engaging with us, we're only delivering for 41 per cent of pool users across the swim season that has just concluded," he said. "I don't for a moment want to risk the safety of the public, not for one moment, but I believe there are ways we could make it work." Fellow independent Cr Peter Gittins said he could not support a motion that, whether true or not, creates a perception of a "two-class society" that is both "inequitable and unfair". Lambton pool accounted for almost 60 per cent of 430,000 visitors to the city's five swimming pools last season. Its entry fee will remain at $6. According to the council, including Lambton in the trial would increase costs by an estimated $1 million each year and result in a $700,000 budget deficit. Labor Cr Elizabeth Adamczyk said Cr Gittins' suggestion excluding Lambton pool from the trial would create a two-class society was "insulting". "We have to make a choice about where our money goes within the parameters that we work in," she said. "What we have before us tonight is ... a sensible middle ground that's found a pathway forward to ensure we are actually delivering on our commitment to our communities, to create equitable, inclusive, connected and healthy communities that will have a real impact in material terms in people's lives." Greens Cr Charlotte McCabe made a move for Lambton pool to be included, but council meeting procedure meant it could only be voted on if the original motion excluding it was lost. Independent lord mayor Ross Kerridge also tried to have Lambton pool included in the original motion, but Labor Cr Declan Clausen argued it was a "direct negative" of the proposal he put forward, so it could not be included. "I would like to see Lambton included in this trial, but we do have a responsibility as a group of councillors not just to listen to what we see, but also to consider the expert advice that we are given," Cr Clausen said. "What we are voting on tonight is a targeted, financially responsible and community-backed initiative to trial $2 pool entry at four of our inland pools. It's not the end of the conversation; it's just the beginning. Cr Clausen said councillors could either vote for a "meaningful improvement" to pool access or hold out for the perfect solution that may never arrive. "I ask each of you not to make the perfect the enemy of the good," he said. The trial is expected to cost the council $900,000 in 2025/26 and a further $200,000 in enhanced security at all pools. According to the council, the trial will increase the annual spend on pools to $4 million. City of Newcastle chief executive Jeremy Bath has the power to terminate the trial before the end of the 2026 summer swim season, but only if "significant risks" eventuate that cannot be "sufficiently controlled". IT'S the most popular watering hole in the city, but Lambton pool will be excluded from a $2 entry trial next season. While some councillors wanted to dive in the deep end with all five pools, a majority chose to test the waters at Beresfield, Mayfield, Stockton and Wallsend before taking the plunge. Lambton pool will not be included in the 2025/26 trial due to "operational and safety risks", given the already high visitation numbers each season, but will be considered for inclusion in future. Councillors also approved a free entry trial at all pools on Australia Day, but not before wading through murky waters during an almost one-hour debate on Tuesday night. Independent Cr Mark Brooker said he was disappointed Lambton pool would not be included in the trial, given 75 per cent of people who took part in community consultation said they intended to take advantage of $2 entry there. "We're delivering for only one quarter of the people who went to the trouble of engaging with us, we're only delivering for 41 per cent of pool users across the swim season that has just concluded," he said. "I don't for a moment want to risk the safety of the public, not for one moment, but I believe there are ways we could make it work." Fellow independent Cr Peter Gittins said he could not support a motion that, whether true or not, creates a perception of a "two-class society" that is both "inequitable and unfair". Lambton pool accounted for almost 60 per cent of 430,000 visitors to the city's five swimming pools last season. Its entry fee will remain at $6. According to the council, including Lambton in the trial would increase costs by an estimated $1 million each year and result in a $700,000 budget deficit. Labor Cr Elizabeth Adamczyk said Cr Gittins' suggestion excluding Lambton pool from the trial would create a two-class society was "insulting". "We have to make a choice about where our money goes within the parameters that we work in," she said. "What we have before us tonight is ... a sensible middle ground that's found a pathway forward to ensure we are actually delivering on our commitment to our communities, to create equitable, inclusive, connected and healthy communities that will have a real impact in material terms in people's lives." Greens Cr Charlotte McCabe made a move for Lambton pool to be included, but council meeting procedure meant it could only be voted on if the original motion excluding it was lost. Independent lord mayor Ross Kerridge also tried to have Lambton pool included in the original motion, but Labor Cr Declan Clausen argued it was a "direct negative" of the proposal he put forward, so it could not be included. "I would like to see Lambton included in this trial, but we do have a responsibility as a group of councillors not just to listen to what we see, but also to consider the expert advice that we are given," Cr Clausen said. "What we are voting on tonight is a targeted, financially responsible and community-backed initiative to trial $2 pool entry at four of our inland pools. It's not the end of the conversation; it's just the beginning. Cr Clausen said councillors could either vote for a "meaningful improvement" to pool access or hold out for the perfect solution that may never arrive. "I ask each of you not to make the perfect the enemy of the good," he said. The trial is expected to cost the council $900,000 in 2025/26 and a further $200,000 in enhanced security at all pools. According to the council, the trial will increase the annual spend on pools to $4 million. City of Newcastle chief executive Jeremy Bath has the power to terminate the trial before the end of the 2026 summer swim season, but only if "significant risks" eventuate that cannot be "sufficiently controlled". IT'S the most popular watering hole in the city, but Lambton pool will be excluded from a $2 entry trial next season. While some councillors wanted to dive in the deep end with all five pools, a majority chose to test the waters at Beresfield, Mayfield, Stockton and Wallsend before taking the plunge. Lambton pool will not be included in the 2025/26 trial due to "operational and safety risks", given the already high visitation numbers each season, but will be considered for inclusion in future. Councillors also approved a free entry trial at all pools on Australia Day, but not before wading through murky waters during an almost one-hour debate on Tuesday night. Independent Cr Mark Brooker said he was disappointed Lambton pool would not be included in the trial, given 75 per cent of people who took part in community consultation said they intended to take advantage of $2 entry there. "We're delivering for only one quarter of the people who went to the trouble of engaging with us, we're only delivering for 41 per cent of pool users across the swim season that has just concluded," he said. "I don't for a moment want to risk the safety of the public, not for one moment, but I believe there are ways we could make it work." Fellow independent Cr Peter Gittins said he could not support a motion that, whether true or not, creates a perception of a "two-class society" that is both "inequitable and unfair". Lambton pool accounted for almost 60 per cent of 430,000 visitors to the city's five swimming pools last season. Its entry fee will remain at $6. According to the council, including Lambton in the trial would increase costs by an estimated $1 million each year and result in a $700,000 budget deficit. Labor Cr Elizabeth Adamczyk said Cr Gittins' suggestion excluding Lambton pool from the trial would create a two-class society was "insulting". "We have to make a choice about where our money goes within the parameters that we work in," she said. "What we have before us tonight is ... a sensible middle ground that's found a pathway forward to ensure we are actually delivering on our commitment to our communities, to create equitable, inclusive, connected and healthy communities that will have a real impact in material terms in people's lives." Greens Cr Charlotte McCabe made a move for Lambton pool to be included, but council meeting procedure meant it could only be voted on if the original motion excluding it was lost. Independent lord mayor Ross Kerridge also tried to have Lambton pool included in the original motion, but Labor Cr Declan Clausen argued it was a "direct negative" of the proposal he put forward, so it could not be included. "I would like to see Lambton included in this trial, but we do have a responsibility as a group of councillors not just to listen to what we see, but also to consider the expert advice that we are given," Cr Clausen said. "What we are voting on tonight is a targeted, financially responsible and community-backed initiative to trial $2 pool entry at four of our inland pools. It's not the end of the conversation; it's just the beginning. Cr Clausen said councillors could either vote for a "meaningful improvement" to pool access or hold out for the perfect solution that may never arrive. "I ask each of you not to make the perfect the enemy of the good," he said. The trial is expected to cost the council $900,000 in 2025/26 and a further $200,000 in enhanced security at all pools. According to the council, the trial will increase the annual spend on pools to $4 million. City of Newcastle chief executive Jeremy Bath has the power to terminate the trial before the end of the 2026 summer swim season, but only if "significant risks" eventuate that cannot be "sufficiently controlled".
News.com.au
4 hours ago
- News.com.au
‘Need a lie down': NSW parliamentary inquiry erupts over Labor's workers comp reforms
NSW's nominal insurer is 'plunging further into insolvency' by more than $6m a day the state's Treasurer has revealed, as Labor's controversial workers compensation reforms face another round of public inquiry. Treasurer Daniel Mookhey revealed during an heated parliamentary inquiry on Tuesday that icare was tipped to rise from a deficit of $4.9bn at the end of 2024 to $6bn on July 1 absent reform. 'The nominal insurer is likely to hold $0.78 in assets for every dollar of future liability, meaning it is plunging further into insolvency at a faster rate,' Mr Mookhey said. 'Or, to put it even more simply, the scheme is no longer going backwards by $5m per day, it is going backwards by more than $6m every day.' The state government's plan to reform workers compensation in NSW hit a major hurdle earlier this month when a strange coalition of the Liberals, Greens and the independents joined together to force another public inquiry. The Liberals have proposed a number of amendments to the Bill, namely staying the lifting of the threshold of permanent whole person impairment (WPI) for psychological injury, and have called on the government to provide costings. After hours of hearings, sparks immediately flew over modelling for the amendments between opposition treasury spokesman Damien Tudehope and Mr Mookhey who said 'the government is co-operating with this inquiry'. Mr Mookhey and Mr Tudehope clashed again over the WPI, which Labor proposes lifting to 30 per cent. The Opposition claims doing so would harm workers injured psychologically to such an extent they may never work again. NSW Treasury Secretary Michael Coutts-Trotter earlier told the committee there was a 'well developed pathway' for those people who, once completing their 130 weeks of payments, would instead transition to the NDIS scheme. Labor claims the changes would not only help reduce the burden on the beleaguered state self-insurer, but would also allow injured workers access to lump sum payments should they wish, instead of remaining on compensation. It was over the WPI that Mr Mookhey faced his second heated argument, this time with Greens MLC Abigail Boyd who asked if he knew the change 'would make us the harshest jurisdiction in Australia and one of the harshest in the world'. Mr Mookhey said he didn't 'accept the characterisation'. He claimed that at 130 weeks, 88 per cent of psychologically injured workers were back at work and accused Ms Boyd of being 'deliberately misleading' in claiming it would cut off '90 something per cent of people' currently on the scheme. Consultant psychiatrist Dr Michael Epstein told the committee earlier on Tuesday afternoon that in comparison with other states, NSW's lifting of the WPI to 30 per cent would make it the 'harshest' in the country. 'NSW is going to take the crown,' Dr Epstein said. Ms Boyd went on to summarise the evidence presented to the committee in three ways: she disputed the projected $2.5bn cost to the self-insurer, said there was 'no imminent danger of scheme collapse', and that the proposed WPI threshold was 'unbearably cruel'. 'I'll just make the point, you're entitled to vote against the legislation,' Mr Mookhey said in reply. Ms Boyd went on to accused Mr Mookhey of using 'misleading language' in referring to payments made by the state government to the self-insurer as a 'bail out', and asked him to 'admit you were wrong'. In response, Mr Mookhey said: 'No'. Following the heated exchange, Ms Boyd said: 'I think we need a bit of a lie down now'. A range of practising psychiatrists, insurance industry representatives and leaders from NSW Treasury and the nominal insurer, icare, gave evidence during the hours-long hearing on Tuesday. Mr Mookhey has warned the state self-insurer is tipped to cost the budget $2.6bn over the next five years, while premiums for the nominal insurer have already been set for eight-per-cent for the next financial year. Exactly how the state government will deliver savings through the scheme was under the spotlight during the hearing, with leaders from NSW Treasury and the nominal insurer grilled over costings for the proposed amendments. Largely, though, the numbers were not available.
Perth Now
6 hours ago
- Perth Now
Fiery exchange over ‘harshest' reforms
NSW's nominal insurer is 'plunging further into insolvency' by more than $6m a day the state's Treasurer has revealed, as Labor's controversial workers compensation reforms face another round of public inquiry. Treasurer Daniel Mookhey revealed during an heated parliamentary inquiry on Tuesday that icare was tipped to rise from a deficit of $4.9bn at the end of 2024 to $6bn on July 1 absent reform. 'The nominal insurer is likely to hold $0.78 in assets for every dollar of future liability, meaning it is plunging further into insolvency at a faster rate,' Mr Mookhey said. 'Or, to put it even more simply, the scheme is no longer going backwards by $5m per day, it is going backwards by more than $6m every day.' The state government's plan to reform workers compensation in NSW hit a major hurdle earlier this month when a strange coalition of the Liberals, Greens and the independents joined together to force another public inquiry. The Liberals have proposed a number of amendments to the Bill, namely staying the lifting of the threshold of permanent whole person impairment (WPI) for psychological injury, and have called on the government to provide costings. After hours of hearings, sparks immediately flew over modelling for the amendments between opposition treasury spokesman Damien Tudehope and Mr Mookhey who said 'the government is co-operating with this inquiry'. Mr Mookhey and Mr Tudehope clashed again over the WPI, which Labor proposes lifting to 30 per cent. The Opposition claims doing so would harm workers injured psychologically to such an extent they may never work again. Treasurer Daniel Mookhey defended the Bill in a heated exchange. NCA Newswire/ Gaye Gerard Credit: News Corp Australia NSW Treasury Secretary Michael Coutts-Trotter earlier told the committee there was a 'well developed pathway' for those people who, once completing their 130 weeks of payments, would instead transition to the NDIS scheme. Labor claims the changes would not only help reduce the burden on the beleaguered state self-insurer, but would also allow injured workers access to lump sum payments should they wish, instead of remaining on compensation. It was over the WPI that Mr Mookhey faced his second heated argument, this time with Greens MLC Abigail Boyd who asked if he knew the change 'would make us the harshest jurisdiction in Australia and one of the harshest in the world'. Mr Mookhey said he didn't 'accept the characterisation'. He claimed that at 130 weeks, 88 per cent of psychologically injured workers were back at work and accused Ms Boyd of being 'deliberately misleading' in claiming it would cut off '90 something per cent of people' currently on the scheme. Consultant psychiatrist Dr Michael Epstein told the committee earlier on Tuesday afternoon that in comparison with other states, NSW's lifting of the WPI to 30 per cent would make it the 'harshest' in the country. 'NSW is going to take the crown,' Dr Epstein said. Ms Boyd went on to summarise the evidence presented to the committee in three ways: she disputed the projected $2.5bn cost to the self-insurer, said there was 'no imminent danger of scheme collapse', and that the proposed WPI threshold was 'unbearably cruel'. 'I'll just make the point, you're entitled to vote against the legislation,' Mr Mookhey said in reply. Opposition treasury spokesman Damien Tudehope (centre) with Opposition Leader Mark Speakman, left. NewsWire/ Gaye Gerard Credit: News Corp Australia Ms Boyd went on to accused Mr Mookhey of using 'misleading language' in referring to payments made by the state government to the self-insurer as a 'bail out', and asked him to 'admit you were wrong'. In response, Mr Mookhey said: 'No'. Following the heated exchange, Ms Boyd said: 'I think we need a bit of a lie down now'. A range of practising psychiatrists, insurance industry representatives and leaders from NSW Treasury and the nominal insurer, icare, gave evidence during the hours-long hearing on Tuesday. Mr Mookhey has warned the state self-insurer is tipped to cost the budget $2.6bn over the next five years, while premiums for the nominal insurer have already been set for eight-per-cent for the next financial year. Exactly how the state government will deliver savings through the scheme was under the spotlight during the hearing, with leaders from NSW Treasury and the nominal insurer grilled over costings for the proposed amendments. Largely, though, the numbers were not available. Asked about the government's return to work strategy, Mr Coutts-Trotter said some 3500 people were on the scheme with a $60m saving, with Mr Tudehope asking: 'Wouldn't you give this program a chance to operate before you actually embarked upon removing benefits?'
