The NSW Liberals and Nationals have secured important improvements to Labor\u2019s Workers Compensation proposals.\u00a0
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The outcome balances three imperatives: affordability for employers, protection for injured workers, and long-term sustainability of the scheme.\u00a0
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Significantly the agreement will see:\u00a0
\u00b7 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 iCare premiums frozen at the current rate for 18 months \u00a0
\u00b7 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Improved protections for the most injured workers with an additional 12 months of medical benefits and income support and \u00a0
\u00b7 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Increased funding for return-to-work programs, including retraining, mentoring and specialist case workers \u00a0
Leader of the Opposition Kellie Sloane said from the outset the NSW Liberals and Nationals mounted a case against Labor\u2019s original plan to cut entitlements for injured workers, particularly those with permanent psychological injuries.\u00a0
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\u201cOur consistent position has been that reform should focus on the front end of the scheme, targeting rorts, inefficiencies, and poor return-to-work outcomes that drive premium increases and productivity losses. That remains our position today,\u201d Ms Sloane said. \u00a0
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However, prolonged uncertainty was no longer sustainable. \u00a0
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\u201cSmall businesses and charities should not be heading into Christmas facing unknown premium shocks, and injured workers must have certainty of support and recovery pathways. NSW must also have a sustainable Workers Compensation system,\u201d Ms Sloane said. \u00a0
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\u201cAs new Leader, my priority was to reset negotiations with the Treasurer to stabilise premiums for business while strengthening protections for workers with psychological injuries,\u201d she said.\u00a0
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\u201cNeither side achieved everything it sought. But this agreement represents a clear and material improvement on the Government\u2019s original position.\u201d\u00a0
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Ms Sloane said the resolved framework delivers stronger protections for the most seriously injured workers, including enhanced return-to-work support and increased access to medical benefits. \u00a0
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The arrangements will remain in place while the State\u2019s Chief Psychiatrist develops a new, clinically robust test for permanent psychological injury.\u00a0
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However, Ms Sloane made clear the Opposition does not endorse Labor\u2019s broader handling of the workers compensation system.\u00a0
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\u201cThis agreement resolves immediate instability, but it does not fix the underlying structural weaknesses in the scheme,\u201d she said.\u00a0
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\u201cThe Opposition does not support the Government\u2019s overall approach, and we remain committed to pursuing meaningful, long-term structural reform to ensure NSW has a Workers Compensation system that is fair, compassionate, and financially sound.\u201d\u00a0
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\u201cWe will continue to hold the Government to account until that reform is delivered.\u201d\u00a0
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NSW Nationals Leader Gurmesh Singh said this deal is a win for business, and a win for injured workers. \u00a0
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\u201cSmall business is the lifeblood of regional NSW, and right now they’re doing it tough. Premiums have increased significantly under the Minns Labor Government, putting pressure on bottom lines,\u201d Mr Singh said. \u00a0
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\u201cThe Liberal and Nationals amendments put a firm limit in the legislation, making sure the government can’t approve any rise in premiums. It\u2019s a safeguard for employers and a reminder that affordability must stay front and centre.\u00a0
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“More work is needed to shield businesses from bogus claims, but our amendments give employers some certainty as we head into the Christmas period.”\u00a0
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Under the NSW Liberals and Nationals proposal, the NSW Government has agreed to the following:\u00a0
1. \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 The Whole Person Impairment (WPI) thresholds at 25% (in July 2026) rather than the original 31% proposed by the Government. \u00a0
2. \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 The reasonable management action defence may be triggered where it is the significant cause of injury.\u00a0
3. \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 A legislated restriction on iCare premiums, under which no average premium increases may be approved. Existing premium settings will apply with no additional increase.\u00a0
4. \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 A legislated cap on iCare premiums, which will sunset in 18 months, by which time the Chief Psychiatrist\u2019s report is expected to be completed.\u00a0
5. \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 The Treasurer will be given a regulation-making power to adjust the WPI threshold to present settings below the legislated cap where it is in the public interest.\u00a0
6. \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 The establishment of a new \u201cReturn to Work Intensive\u201d year, under which a worker with\u00a0
7. \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 WPI above 20% but below the maximum WPI threshold will receive:\u00a0
1. \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 An additional 52 weeks of medical benefits\u00a0
2. \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 An additional 52 weeks of income replacement at 60% of PIAWE\u00a0
3. \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Appropriate training, mentoring, and other supports to facilitate a return to work\u00a0
8. \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Increased funding for return-to-work programs, including retraining, mentoring, and specialist case workers.\u00a0
9. \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 The development of a successor program to Business Connect with a comparable budget, informed by expert consultation. \u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
The NSW Liberals and Nationals have secured important improvements to Labor\u2019s Workers Compensation proposals.\u00a0\u00a0The outcome balances three imperatives: affordability for employers, protection for injured workers, and long-term sustainability of the scheme.\u00a0\u00a0Significantly the agreement will see:\u00a0\u00b7 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 iCare premiums frozen at the current rate for 18 months \u00a0\u00b7 \u00a0 … Continue reading “NSW Liberals and Nationals secure stronger protections for injured workers while stabilising premium”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-36503","post","type-post","status-publish","format-standard","hentry","category-nswnews"],"_links":{"self":[{"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/posts\/36503","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/comments?post=36503"}],"version-history":[{"count":1,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/posts\/36503\/revisions"}],"predecessor-version":[{"id":36504,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/posts\/36503\/revisions\/36504"}],"wp:attachment":[{"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/media?parent=36503"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/categories?post=36503"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/tags?post=36503"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}