NSW opposition leader Kellie Sloane heralds ‘reset’ before workers comp deal with Labor
NSW’s new opposition leader Kellie Sloane says a “reset” in negotiations with the government led to a breakthrough in workers compensation reform.
NSW opposition leader Kellie Sloane said a “reset” in negotiations with the Labor government led to a breakthrough in workers compensation reform after a months-long stalemate, but admits “neither side achieved everything it sought”.
The NSW government failed to pass its controversial reforms to the workers compensation scheme before parliament rose earlier this year, following stiff opposition from the upper house, particularly from the NSW Coalition, Greens, and independent MLC Mark Latham.
Instead, Treasurer Daniel Mookhey and Ms Sloane agreed on Thursday to a compromise package which would mean insurance premiums frozen for 18 months.
The deal also seeks to address a key sticking point for detractors of the reforms — the whole person impairment (WPI) threshold — with those psychologically injured workers now being booted from benefits after three and a half years rather than two and a half, unless if they reach the 25 per cent WPI threshold.
Shadow treasurer Damien Tudehope had consistently argued doing so would severely impact the state’s most vulnerable workers – a sentiment shared by many of the state’s unions, as well as industry and legal groups.
Labor had proposed raising the WPI threshold to 31 per cent.
However, he NSW Parliament’s Public Accountability and Works Committee found raising the WPI threshold to 31 per cent for psychological injury would disqualify people who are not “fit to work in any capacity”.
Currently, the threshold for psychologically injured workers is just 15 per cent.
Announcing the deal, Ms Sloane said small businesses and charities should not be heading into Christmas facing “unknown premium shocks”.
“As new leader, my priority was to reset negotiations with the Treasurer to stabilise premiums for business while strengthening protections for workers with psychological
injuries,” she said.
“Neither side achieved everything it sought. But this agreement represents a clear and material improvement on the government’s original position.”
Despite the deal, Ms Sloane said the opposition still did not endorse Labor’s broader handling of the scheme.
“This agreement resolves immediate instability, but it does not fix the underlying structural weaknesses in the scheme,” she said.
“The opposition does not support the Government’s overall approach, and we remain committed to pursuing meaningful, long-term structural reform to ensure NSW has a
Workers Compensation system that is fair, compassionate, and financially sound.”
“We will continue to hold the government to account until that reform is delivered.”
Under the deal, arrangements will remain in place while the State’s Chief Psychiatrist develops a new test for permanent psychological injury.”
Increased funding will also be provided for return-to-work programs, including retraining, mentoring and specialist case workers
The Treasurer has, for months, argued that without reform the workers compensation scheme would collapse, and that businesses would face surging premiums.
He had said the reforms needed to be passed to save businesses from rising premiums, and is expected to address the media later on Thursday.
Addressing the compromise, Mr Mookhey said it allowed the government to “stabilise the workers compensation system and return it to a secure footing”.
“It has been failing injured workers, employers, the non-profit sector and taxpayers for too long. Continuing to do nothing was not an option,” he said.
Industrial Relations Minister Sophie Cotsis said the reforms will help small businesses and not for profits, especially in regional areas, retain staff and create jobs.
“The hard work of implementation has already begun, and we will work in collaboration with all stakeholders to ensure the reforms are delivered effectively for workers and businesses,” she said.
Nationals Leader Gurmesh Singh, who also only took the reigns of the party in the past few months, said the agreement was a boon for small businesses.
“Premiums have increased significantly under the Minns Labor Government, putting pressure on bottom lines,” Mr Singh said.
“The Liberal and Nationals amendments put a firm limit in the legislation, making sure the government can’t approve any rise in premiums.
“More work is needed to shield businesses from bogus claims, but our amendments give employers some certainty as we head into the Christmas period.”
