Business NSW backs workers comp reforms amid claims one in five businesses will be shuttered
NSW’s largest business advocacy body has claimed tens of thousands of family businesses will go to the wall without bipartisan support for workers’ compensation reforms.
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NSW’s largest business advocacy body has claimed tens of thousands of family businesses will go to the wall without bipartisan support for workers’ compensation reforms, as the Coalition weighs up whether to attempt to delay the controversial legislation.
The reforms attempt to crackdown on workplace compensation levels, seeking to make it harder to lodge spurious psychological injury claims, which the government claims are sending the insurance scheme broke.
Soaring deficits in the private sector’s nominal insurer scheme, administered through iCare, will see workers compensation premiums rise 36 per cent by the 2027-28 financial year according to NSW Treasury modelling.
Business NSW, which represents the interests of nearly 50,000 businesses across the state, has called on leaders on both sides of the political aisle to pass legislation which would lift the thresholds for psychological injury claims and enshrine protections for employers when performance managing staff.
In a survey of 720 small and medium-sized enterprises, one in five said they would be forced to close their doors if premiums rose by 36 per cent.
More than a third said they would need to scale back their operations or put expansion plans on hold, and 45 per cent would reduce their headcount in response.
One business owner reported “our main concern is workers’ compensation premiums as we have no control over what we pay (no ability to price check)”.
Another, a medium-sized not-for-profit disability provider, said their workers compensation bill had gone up 400 per cent despite a 10 per cent increase in staff over the last five years, after two staff were stood down for serious allegations about their conduct, and a third made a claim for an injury allegedly caused by another employee querying their availability for a meeting.
Business NSW chief executive Dan Hunter said the workers compensation scheme is “broken” and “out of control”. With insurance costs already consistently ranked the number one concern for businesses, Mr Hunter said many were already at breaking point prior to an extra 36 per cent being added on.
“Let’s make no mistake about it – this will send some businesses broke,” he said.
“Every day that goes by, the private sector workers compensation scheme goes into debt by another $5 million, this can’t afford to wait two months, or six months, or 12 months.
“We need serious reform, and we need it now.”
The Minns government hopes the reforms will pass parliament this week with Opposition support, yet it is understood the Coalition may seek to delay the outcome by requesting the matter be looked at by an upper house inquiry.
Opposition Leader Mark Speakman said the Coalition would meet “to consider the bill as best we can in the limited time available” at a shadow cabinet meeting on Monday afternoon.
“We recognise the need to reform the workers compensation system to put downward pressure on premiums,” he said.
Should the bill not pass this week, Treasurer Daniel Mookhey will not be able to include millions in savings in the upcoming budget later this month.
This comes as a powerful coalition of industry bodies made up of Clubs NSW, the Australian Hotel Association, Restaurant and Catering Australia, the Pharmacy Guild of Australia NSW and the Australian Childcare Alliance NSW also signed a joint statement urging the opposition to pass the reforms.
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Originally published as Business NSW backs workers comp reforms amid claims one in five businesses will be shuttered
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