$1 billion in reforms to NSW worker comp scheme

$1 billion in reforms to NSW worker comp scheme

SafeWork NSW, enhanced benefits, premium reductions

NSW Business Chamber’s Chief Executive, Stephen Cartwright welcomed the package of reforms: “[It] address some key anomalies in the current system such as benefits for workers injured nearing retirement, and provide additional support for seriously injured workers and those with ongoing needs”. However, he cautioned that the reforms need to be transparently monitored to ensure the workers compensation scheme does not suffer blow-outs or become too costly.

The president of Australian Medical Association (AMA) NSW, Saxon Smith welcomed the changes to the workers compensation scheme in relation to injured workers, including the reduction in the threshold for permanent impairment from 30% to 21% permanent impairment: “It better reflects the support needed by injured workers who are unable to return to work”.

Greens MP and IR Spokesman, David Shoebridge described the reforms as “a modest step in the right direction” in that thousands of injured workers will benefit, but thousands more will be left without essential support. He said the $1 billion being spent on reforms represents a fraction of the multi-billion surplus the scheme has generated since it was reformed with ‘savage’ benefit cuts in 2012, and that the surplus should be reinstated ‘dollar for dollar’ to injured workers in need of income and medical support.



Shoebridge welcomed the decision to restructure WorkCover into three separate agencies and admitted the government deserves credit for improving income assistance for older injured workers who will now be entitled to up to 12 months income replacement after they reach the retirement age. However, he said the reforms do not satisfy the fundamental principles of a fair workers compensation scheme: “Every injured worker deserves lifetime access to medical treatment and income replacement while ever they are suffering wage loss from their injury”.