NIBA Meets with NSW Crossbench as Workers Compensation Legislation Passes Lower House

The Workers Compensation Legislation Amendment Bill 2025 has passed the New South Wales Legislative Assembly and is expected to be considered by the Legislative Council on Thursday. 

The Bill proposes a number of structural changes to the workers compensation system in NSW, with a particular focus on psychological injuries.

This includes;

• Increasing the whole-person impairment threshold for psychological injuries to 31 percent. 
• Restricting compensable psychological injuries to those arising as a result of a defined ‘relevant event’. 
• Introducing  new definitions for ‘psychological injury’ and ‘reasonable management action’. 
• Expediting assessment of psychological injuries and introducing a designated dispute process within the Industrial Relations Commission 

These reforms follow a period of rising claim volumes and costs, particularly for psychological injuries, which the Government says are placing pressure on the financial sustainability of the Nominal Insurer and the Treasury Managed Fund (TMF), which provides cover for public sector workers. 

Ahead of the Bill’s consideration in the Legislative Council, NIBA has met with a number of crossbench members, including the Hon. Rod Roberts MLC. These discussions have focused on the need to protect injured workers, provide certainty for businesses, and secure the future of workers’ compensation in New South Wales. 

“NIBA recognises the need to reform the NSW workers compensation scheme and supports the Government’s goal of returning it to financial viability.” said NIBA CEO, Richard Klipin,  

“The NSW workers’ compensation system plays a vital role in supporting injured workers, businesses and the broader economy. It is a system where failure can have profound personal, social and financial consequences - which is why we have been engaging with members of Parliament to ensure that any proposed reforms are considered, measured and fit for purpose,” added Richard.