NSW upper house MPs will hold a hearing tomorrow as they review the government’s planned reform of workplace mental injury laws.

The Public Accountability and Works Committee will examine the reform’s impact on business and economic conditions and set its own reporting date, according to the inquiry’s terms of reference.

Premier Chris Minns has said if the legislation is not passed, an additional $2 billion will be required from state taxpayers to fund the public portion of the workers’ compensation scheme, and premiums will radically increase for small businesses.

The Workers Compensation Legislation Amendment Bill 2025 passed the lower house but failed to gain enough support in the upper house, which referred it to another inquiry.

Critics of the reforms say the first inquiry’s consultation period was too short to fully examine the impact of proposed changes around workers with mental injury claims.

The Law Society of NSW said: “Evidence-based examination of the bill creates a greater likelihood that the parliament can legislate for a sustainable workers’ compensation scheme that is fair to genuinely injured workers and affordable for businesses and the taxpayer.

“The Law Society looks forward to the inquiry ... and remains available to the Legislative Council to provide our expert assistance in this further inquiry on this important bill.”