The NSW Nationals have secured important improvements to Labor’s Workers Compensation proposals.
The outcome balances three imperatives: affordability for employers, protection for injured workers, and long-term sustainability of the scheme.
Significantly the agreement will see:
• iCare premiums frozen at the current rate for 18 months
• Improved protections for the most injured workers with an additional 12 months of medical benefits and income support and
• Increased funding for return-to-work programs, including retraining, mentoring and specialist case workers
NSW Nationals Leader Gurmesh Singh said the deal is a win for business, and a win for injured workers.
“Small business is the lifeblood of regional NSW, and right now they’re doing it tough. Premiums have increased significantly under the Minns Labor Government, putting pressure on bottom lines,” Mr Singh said.
“The Nationals’ amendments put a firm limit in the legislation, making sure the government can’t approve any rise in premiums. It’s a safeguard for employers and a reminder that affordability must stay front and centre.
“More work is needed to shield businesses from bogus claims, but our amendments give employers some certainty as we head into the Christmas period.”
Under the NSW Nationals proposal, the NSW Government has agreed to the following:
1) The Whole Person Impairment (WPI) thresholds at 25% (in July 2026) rather than the original 31% proposed by the government.
2) The reasonable management action defence may be triggered where it is the significant cause of injury.
3) A legislated restriction on iCare premiums, under which no average premium increases may be approved. Existing premium settings will apply with no additional increase.
4) A legislated cap on iCare premiums, which will sunset in 18 months, by which time the Chief Psychiatrist’s report is expected to be completed.
5) The Treasurer will be given a regulation-making power to adjust the WPI threshold to present settings below the legislated cap where it is in the public interest.
6) The establishment of a new “Return to Work Intensive” year, under which a worker with
7) WPI above 20% but below the maximum WPI threshold will receive:
a) An additional 52 weeks of medical benefits
b) An additional 52 weeks of income replacement at 60% of PIAWE
c) Appropriate training, mentoring, and other supports to facilitate a return to work
8) Increased funding for return-to-work programs, including retraining, mentoring, and specialist case workers.
9) The development of a successor program to Business Connect with a comparable budget, informed by expert consultation.
