Business NSW has called for the state parliament to enact workers’ compensation reforms before Christmas after a compromise proposal failed to break a deadlock last week. 

“Businesses cannot go into Christmas with the threat of a 36% increase in workers’ compensation premiums hanging over their heads,” CEO Daniel Hunter said.  

Members of the group warn they will need to cut jobs, scale back operations and put expansion plans on hold if premiums surge. 

Mr Hunter says this week provides an opportunity to pass reforms ahead of parliament closing for the year. 

The government is pursuing changes to reduce the cost of psychological injury, but a plan to raise the whole person impairment threshold for accessing mental injury benefits and damages is among the most contentious in the draft legislation. 

Independent MPs made counterproposals last week aiming to break the deadlock, but reforms continued to founder after an all-night Legislative Council debate that extended from around 2:30pm to almost 5am on Friday.