Workers comp reforms delayed after Liberal opposition
Treasurer Daniel Mookhey has failed to overhaul the workers compensation scheme in time for in this month’s budget after his reforms were opposed by the Liberals and the Greens.
NSW
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Treasurer Daniel Mookhey has failed to overhaul the workers compensation scheme in time for in this month’s NSW budget.
Upper house MPs voted on Thursday to send the legislation to a parliamentary committee, after the Coalition moved to oppose the changes.
The committee inquiry means any changes to the compensation system may not be legislated by the new financial year.
Upper house MPs voted to expedite the inquiry process, which means there is still a possibility reforms could be made prior to the end of financial year.
The government has warned the delay could increase businesses’ insurance premiums, when the insurance scheme is next revalued.
It is understood the budget later this month will reflect the ongoing depreciation of the scheme as a result.
Liberal Leader Mark Speakman angered many in the business community by vowing to oppose Mr Mookhey’s changes, which would have made it harder for workers to claim compensation payments for psychological injury.
Mr Mookhey has previously said that without reform, businesses would face a 36 per cent hike in insurance premiums to prevent the compensation scheme collapsing.
“Ultimately workers comp reform has to happen, the system is failing everybody and we do need to deal wth it,” Mr Mookhey said in parliament.
“We will be looking forward to seeing this debate resume in just a few weeks.”
Business leader said they were “disappointed” by the delay of the reforms.
Business NSW chief executive Dan Hunter said every day of delays cost businesses more.
“We’re really disappointed that the reform has not progressed as presented this week,” he said.
“Everyday we delay these reforms the scheme goes $5 million in deficit.
“The deficit in the scheme now stands in the billions and this can only be made up by premium increases for hardworking businesses in NSW.”
Opposition leader Mark Speakman said that the reforms needed to go to inquiry to test the government’s calculations on the cost of the scheme. He said should the government have wanted to rush the reforms through parliament, they should have accepted Coalition amendments scrapping changes to the “whole person impairment “ WPI threshold.
The government attempted to raise the WPI threshold for psychological injuries to 31 per cent, which would cut more workers off compensation payments after Two-and-a-half years.
“What do we say to the business lobby: get on the phone to the government and tell the government to pass amended legislation and we can sort WPI out later,” Mr Speakman said.
“We’d be happy to recall parliament at any time if there’s a consensus on that.
“This delay, this problem falls at the feet of Chris Minns and Daniel Mookhey.”
The business lobby are not the only one hoping for swift action on workers compensation reforms. The not-for-profit sector as also been struggling with rapidly rising premiums.
The Mental Health Coordinating Council, which looks after services across the state that deliver community mental health support had their premiums rise by 20.5 per cent in the last financial year despite having only $3 million to run the business with.
MHCC chief executive Evelyne Tadros said while is was crucial to support people with legitimate psychological injuries, rising premiums would cause some services to cut their offerings.
“We’re a largely government funded organisation and our funding is not going up 20.5 per cent,” she said.
“We have one organisation whose claim has gone up 25 per cent to a premium of $2 million per year. They’re a mental health organisation with funding of around $90 million.
“The shortfall would eventually have to come by reducing staff, which means the needs of more vulnerable clients are not met.”
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Originally published as Workers comp reforms delayed after Liberal opposition
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