Proposed changes to NSW’s laws on workplace mental injury benefits have cleared the state parliament’s lower house, as lawyers continue to voice concerns.

Today, Treasurer Daniel Mookhey introduced the Workers Compensation Legislation Amendment Bill 2025 in the upper house, where it faces a final vote.

“The government has been able to get the ... bill through the Legislative Assembly,” he said. “This is despite the Liberals teaming up with the Greens to block this important reform. They should now unite to pass this legislation in the upper house.

“This bill is about creating a modern system that will better protect workers from psychological injury and provide better help when they need it.”

The government says the changes will ensure businesses do not face an “unnecessary” $1 billion annual insurance premium rise. “Without the reform, the premiums paid by businesses are set to increase by 36% over three years to 2028.”

Some of the most contentious reform proposals have been revised, including on the whole person impairment threshold for assessing a psychologically injured worker’s access to benefits and damages.

The government has decided on a gradual increase to the threshold determining weekly payments for life, lifting it to 25% from October and more than 30% from July 1 next year.

Its draft bill had included a 31% threshold for access to weekly payments beyond 2.5 years, lump sum payments for permanent problems and access to damages.

The Law Society of NSW – whose members represent claimants, employers and insurers – says the bill should not pass.

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

The society says it has written to opposition and Greens members of the Legislative Council – the state’s upper house.

Its letter says the government should return to the design stage and hold “a meaningful consultation informed by relevant and publicly accessible data and involving a diverse range of stakeholders, with adequate time for consultation.

“We are concerned … that the proposed changes will effectively exclude the vast majority of persons with psychological injuries, including those who are severely disabled by contemporary community standards, from accessing the scheme.”

On the whole person impairment threshold, the letter adds: “The Law Society continues to oppose the increase … to 31%, and if the transitional approach is to be adopted, we suggest that it would be appropriate to start at a threshold of 20% or greater.

“This would conceivably achieve the aim of reducing the number of claims while ensuring at least some people recognised by community standards as being severely impacted by psychological workplace injuries would be able to make a claim.”

See the letter here.