McDougall Review recommendations to be legislated in NSW

The NSW Government has announced that it will be introducing legislation to update the worker’s compensation scheme in response to recommendations in the icare and State Insurance and Care Governance Act 2015 Independent Review.

Retired Supreme Court Justice the Hon. Robert McDougall QC conducted a thorough examination of Insurance and Care NSW (icare) and handed down his review at the end of April 2021. The Legislative Council Law and Justice Committee also released its report on the 2020 Review of the Workers Compensation Scheme at the end of April. The Committee’s recommendations for legislative changes overlap with recommendations of the McDougall Review.

Treasurer Dominic Perrottet said these additional recommendations requiring legislation will be adopted to strengthen governance and regulation, and clarify the roles of organisations in the NSW workers compensation system.”

“We are taking the next steps to deliver a stronger and better worker’s compensation scheme with these changes, addressing scheme-wide issues identified by the Review,” Perrottet explained.

The state government will be introducing legislation to address a further eight recommendations from the Review, after 35 recommendations, which icare and the State Insurance Regulatory Authority (SIRA) were able to implement operationally without legislation, were accepted immediately after the Review was handed down.

Minister for Digital and Minister for Customer Service, Victor Dominello added, “that SIRA would also be carrying out a further public consultation on the four McDougall Review recommendations which deal with threshold tests for entitlements, entitlement to medical treatment and access to lump-sum settlements.”

“SIRA is committed to working with icare to make sure we get the settings right to deliver the best health outcomes for injured workers, and it’s important we hear from the public and key stakeholders on these matters,” Dominello clarified.

“Following this consultation, the NSW Government will consider whether further legislative reform is required.”

The NSW Government has revealed that it intends to introduce a single bill to address all legislative changes required as a result of the McDougall Review, including any that arise from the consultation.

The introduction of legislation will implement eight of the recommendations of the McDougall Review, including with respect to:
 Terms of directors
 Clarifying SIRA’s regulatory powers in relation to icare and the Nominal Insurer
 Adding policy objectives in the State Insurance and Governance Care Act 2015
 Clarifying the objectives, roles, powers, and functions of icare, SIRA and SafeWork.