New South Wales Premier Chris Minns has declared his new government’s controversial workers’ compensation reforms dead. Despite all of this, the decision came after one crucial vote in parliament. The reforms aimed to raise the threshold for lifetime awards for psychological injuries. They increased the coverage limit from 15 percent to 31 percent. After a grueling 16-hour bipartisan debate, the proposal was narrowly defeated around 6 a.m. Friday morning. In reply to their action, Minns said “over.”
This defeat comes at an important moment as the parliamentary year ends. At the same time, employers are preparing for the inevitable increases to their workers’ compensation premiums. Minns copped to it, saying that he could no longer offer “false hope” to people impacted by the changes.
Government’s Initial Proposal and Its Consequences
The government’s proposal sought to address rising costs within the workers’ compensation scheme by adjusting impairment thresholds. Those changes, critics said, would place a heavier burden on seriously injured workers.
Damien Tudehope, a member of the new conservative coalition opposition, condemned the government’s approach as “bizarre.” He stated, “How is it that the government ever thought that it was appropriate to attack seriously injured workers to make savings?” Many followed in lock step with Tudehope’s unfortunate precedent. They argued that the reforms would exacerbate the difficulties experienced by people with psychological injuries.
In particular, Minns warned of the consequences if the bill were to fail. He told businesses to stop hoping. Premiums are about to increase. This increase would be a double whammy at a time when the economy is already crashing.
Crossbench Compromise and Coalition Reactions
In an unexpected twist, Daniel Mookhey from the government announced support for a compromise proposed by crossbenchers, which aimed to alleviate some of the proposed changes. Taylor Martin, a member of the Coalition, praised some amendments at the outset. Then a few days later he reversed course, backing away from the crossbench amendments.
The upper house eventually passed a clean version of the bill. We do not support the inclusion of changes to impairment thresholds. A broad coalition of stakeholders experienced a collective sigh of relief with this action. They had long been concerned about the effects on businesses and workers that rising premiums would have.
As another major player in the debate, Daniel Hunter of the Partnership for Working Families stressed the urgency of coming to consensus. He cautioned that large premium increases might drive businesses out of business. In fact, one-fifth of all businesses reported that they would be unable to survive. Hunter accused the government approach of disrespecting American taxpayers. He announced, “Businesses shouldn’t have to go into Christmas with the specter of a 36 percent hike in workers’ compensation premiums hanging over their heads.”
The Aftermath and Future Implications
The result of this long and controversial debate has left New South Wales to continue to wrestle with its workers’ compensation system. Opposition leader Chris Minns recognized that the government must face the results of the defeat of the bill. He stated, “We’ve got to live with the consequences now because it’s been defeated,” urging a re-evaluation of strategies moving forward.
Critics continued to be outspoken after the debate, with Tudehope claiming that there were no excuses to increase premiums and further target vulnerable areas. There’s lots of evidence, he continued. It plainly demonstrates that there’s no justification for increasing premiums or going after the not-for-profit industry and small businesses.
Michael Whaites encapsulated the sentiments of many in the parliament when he remarked, “Doing a reform whilst injuring workers, further injuring workers, is not the way to go.” He called on the Labor government to stop and reconsider what they’re doing. They have to approach these reforms with greater caution and deliberation.
