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Perth Now
26-05-2025
- Health
- Perth Now
Major update on workers compensation reform
A revised plan to up-end the NSW state workers compensation scheme will be tabled in parliament on Tuesday following widespread opposition from the state's unions. Multiple unions representing teachers, nurses and a range of other fields rallied outside parliament on Monday morning in opposition to a draft proposal. Following that backlash and a hearing into the proposal, the Labor government will introduce an updated Bill on Tuesday to reform the scheme. Treasurer Daniel Mookhey told the inquiry he would not authorise any further cash injections to the Treasury Managed Fund, the state self-insurer. On Tuesday, Mr Mookhey said the Minns government wanted to create 'a modern system that will better protect workers from psychological injury and provide better help when they need it'. 'I want to ensure that future generations of workers across NSW have a workers compensation system they can rely on,' he said. 'As the workplace evolves, our capacity to support people in it must adapt accordingly.' Industrial Relations Minister Sophie Cotsis said the reforms would help strengthen a 'culture of prevention', as well as early intervention and recovery. '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,' she said. Hundreds of essential workers from across NSW rallied outside government offices to oppose the government's proposed cuts to workers compensation. Photo: NewsWire/ Gaye Gerard Credit: News Corp Australia '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, support return to work and daily activities, and ensure a sustainable compensation system.' She thanked all who contributed submissions to the consultative process 'for their practical and considered responses'. Unions NSW and a number of other powerful unions in the state had spoken out against the reform and some of its provisions, namely a 31 per cent threshold for damages for permanent impairment due to psychological injury. They had also opposed plans to require anyone psychologically injured because of racial or sexual harassment, or bullying to receive a determination by a court or the Industrial Relations Commission Tribunal. Among the changes since the bill was first made public was a plan to scrap that requirement that workers obtain a finding from the IRC, as well as an expedited system for those types of claims – just eight weeks. Treasurer Daniel Mookhey said he would not authorise any further cash injections to the Treasury Managed Fund: NewsWire / John Appleyard Credit: News Corp Australia The definition of vicarious trauma will also be clarified to include psychological injury arising from 'repeated exposure to the traumatic experiences of others'. Other proposed changes, many of which were raised during the hearing, include reducing legal costs, greater powers to IRC to hear workplace health and safety complaints, and adding 'excessive work demands' as a new compensable cause of psychological injury. Commutations to allow psychologically injured workers with a Whole Person Impairment (WPI) of 30 per cent or below to access a lump sum before their weekly payments cease, will also be introduced, as will a gradual increase to the WPI measure to determine weekly payments for life, rising to 25 per cent from October 2025 and greater than 30 per cent from 1 July 2026. The state government is also rolling out a $44m Workplace Mental Health package, including to SafeWork NSW for injury prevention – with 50 new inspectors specialising in psychological injury – and wraparound psychological support services for people navigating the claims process.
Perth Now
09-05-2025
- Health
- Perth Now
Workers ‘failed' by compensation scheme
Workplace health and safety laws are failing to prevent psychological injuries or treat sufferers quickly, the NSW government has claimed, following the release of plans for a sweeping overhaul of workers compensation. Formal consultation began in March following a commitment by the state government to modernise the state's workplace compensation system and ensure sustainability, with an Exposure Draft released on Friday. Industrial Relations Minister Sophie Cotsis said the Labor state government was committed to 'strengthening a culture of prevention, early intervention, and effective return to work through a series of reforms'. 'These include major reforms to SafeWork NSW, such as expanding the psychosocial inspectorate, and industrial relations reforms that establish a 'stop bullying' jurisdiction,' Ms Cotsis said on Friday. '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. Customer Service Minister Jihad Dib said the current workers compensation system was designed to support people who suffer physical injury. NewsWire / Max Mason-Hubers Credit: News Corp Australia Industrial Relations Minister Sophie Cotsis said the Labor state government was committed to 'strengthening a culture of prevention'. NewsWire / John Appleyard Credit: News Corp Australia 'This aims to optimise recovery, support return to work and daily activities, and ensure a sustainable compensation system.' Customer Service Minister Jihad Dib said the current workers compensation system was designed to support people who suffer physical injury at work, but 'doesn't do enough to help people experiencing psychological injury to recover and return to work'. Under the current system, only 50 per cent of workers with a psychological injury are returning to work within a year. The state government claimed the system currently spends seven times more on keeping an injured worker away from the workplace that it does on does on 'getting them healthy and back on the job'. Insurance premiums are also tipped to rise by 36 per cent over the next three years. The NSW government will not adopt a final position on the proposed reform until after community feedback on the Exposure Draft, which it says is the 'starting point for the next phase of conversations and to highlight the scale of the challenges the scheme is facing'.
