The New South Wales government is facing an uphill battle to pass its workers’ compensation bill ahead of the June budget, with the Coalition wary and Greens opposed to one of the key savings on psychological injury.

Although the shadow cabinet will meet on Monday to determine a final position, the shadow treasurer Damien Tudehope has described the bill as “heavy-handed” and akin to taking “an axe to the scheme when it needed a scalpel”.