The Business Council of Australia today welcomed the agreement reached between the NSW Government and Opposition on workers’ compensation reforms — describing it as a positive, much‐needed step towards restoring sustainability in the state’s insurance scheme.
BCA Chief Executive Bran Black said the deal sends a strong signal to businesses and workers that the state’s workers’ compensation system can be reformed in a way that balances fairness for injured workers with long-term viability for employers.
“This agreement shows what responsible, constructive policymaking can look like,” Mr Black said.
“By locking in a premium freeze and improving clarity around psychological-injury provisions, the Government and Opposition have provided businesses — especially small and medium enterprises — with certainty at a time when cost pressures are acute.”
Mr Black noted the State’s existing concerns with spiralling premium pressure, which the BCA has previously warned may force businesses to bear unsustainable costs, reduce investment or even exit the market.
“By working together, both the NSW Government and Opposition should be congratulated for taking important steps to safeguard both workers and employers,” Mr Black said.
Today’s deal incorporates many of the reforms for which the BCA has long advocated, including:
- Ensuring the scheme is financially sustainable so premiums don’t escalate uncontrollably;
- Introducing clearer, fair definitions for psychological and workplace injuries;
- Reducing the risk of unmeritorious claims that drive up costs for all employers;
- Protecting businesses’ ability to plan, invest and employ with confidence.
The BCA remains deeply concerned about the NSW Government’s proposed digital work systems legislation, which includes heavy-handed and nationally unprecedented laws regulating digital work systems, which was originally included in some of the workers’ compensation reforms. This legislation would give unions unprecedented access to sensitive information, including personal data and emails, potentially harming workers and consumers, and marking NSW as a risky state in which to do business.