NSW Public Accountability and Works Committee Urges Rethink on Proposed Workers’ Compensation Changes

The NSW Public Accountability and Works Committee has tabled its report into the Workers Compensation Legislation Amendment Bill 2025 and the provisions of the Workers Compensation Legislation Amendment (Reform and Modernisation) Bill 2025, delivering 19 findings and 14 recommendations. 

Outlining the report’s direction, Committee Chair Ms Abigail Boyd MLC said: “This report makes a suite of findings and recommendations. These acknowledge the harmful impacts of the bills on injured workers, while recommending a range of measures to improve the workers compensation system without cutting off vulnerable injured workers.  

“Crucially, we unanimously recommend that the NSW Government establish a formalised injured workers advisory committee whom icare and SIRA must consult with about the operation and reform of the workers compensation system.  

“We also recommend that the proposal to lift the degree of permanent impairment thresholds to 31 per cent be withdrawn by the Government.” 

The Workers Compensation Legislation Amendment Bill 2025 was referred to the Committee earlier in the year after stakeholders raised concerns about proposed changes affecting access to long-term psychological injury compensation. 

Throughout the reform process, NIBA has called for a measured, consultative approach.  

“NIBA has always taken a pragmatic, outcomes-focused approach to policy and regulatory engagement, and it is in this spirit that we have been working with all sides of Parliament to support meaningful reform,” said NIBA CEO Richard Klipin. 

NIBA also appeared before the NSW Legislative Council’s Public Accountability and Works Committee, as the reforms were undergoing scrutiny. 

Appearing on behalf of NIBA were NIBA CEO Richard Klipin, NIBA Vice-President Rebecca Wilson, and Executive Chairman of Austbrokers AEI Tim Wedlock.  

In his opening remarks to the Committee, Mr Klipin welcomed the inquiry and commended the NSW government and the committee for engaging with these “complex yet crucial issues.”  

NIBA noted the scheme’s deteriorating financial position, raising concerns about the long-term stability of the scheme and its ability to meet future claims obligations.  

While acknowledging the need for reform within the scheme, NIBA told the Committee that the proposed legislative changes were unlikely to resolve the underlying financial and structural pressures facing the system. Instead, NIBA encouraged the government to consider reforms to strengthen the governance and oversight of the scheme.