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Inquiry draws blank on NSW worker injury overhaul

A NSW parliamentary inquiry into proposed changes to workplace injury compensation laws has made no recommendations.

Instead, its final report urges the state government to “take note” of evidence received during the probe.

The Legislative Council’s Standing Committee on Law and Justice released its two-volume report on Friday after a one-day public hearing on May 16.

Treasurer Daniel Mookhey had referred terms of reference to the committee on May 8 and recommended it report no later than Friday, because the government intends to introduce legislation tomorrow.

Committee chair Greg Donnelly says in the report’s foreword: “No doubt there will be critics of the report who will deride it as a ‘tick and flick’ or ‘rubber stamp’ exercise.  

“I categorically refute such claims and submit that in the circumstances before it, the committee undertook what it has done as thoroughly as is possible.

“The fact of the matter is that the time frame did not permit the committee to undertake detailed examination and analysis of the volume of evidence, let alone prepare thorough and considered commentary, findings and recommendations.”

The government says its exposure draft’s key changes tackle rising mental health claims, which are pressuring workers’ compensation schemes.

But lawyers, unions and mental health advocates have voiced concerns, especially over the plan to raise the whole person impairment threshold to 31% for mental health benefits and damages. The threshold is used for assessing income support and medical treatment.

Provisions in the draft state the 31% threshold for psychological injury must be met for access to weekly payments beyond 2.5 years, lump sum payments for permanent problems, and access to work injury damages. 

In a submission, the Insurance Council of Australia acknowledges the need for governments to review scheme settings to address evolving challenges, and to ensure long-term sustainability.

It says increased costs and longer times absent from work associated with psychological injury claims contribute to higher overall claim liabilities for workers’ compensation programs.

“The Insurance Council recognises the challenge for workers’ compensation schemes in providing adequate support to injured workers while ensuring premiums are sustainable for employers,” the submission says.

“This requires balancing the need for timely support, including medical care, wage compensation and rehabilitation, with the financial impact on businesses.”

Click here to see the submissions.