Sloane’s deal would see workers cut off from regular compensation payments after 3½ years (instead of 2½) unless they can prove a WPI of at least 25 per cent. The government had wanted that rate to be 31 per cent, which would have excluded a significant number of workers.
Mookhey has argued reforms are critical to address an increasingly unsustainable compensation scheme where a doubling of psychological injury claims has placed significant pressure on the system’s financial viability, resulting in rising premiums for businesses and charities.
Most psychologically injured workers cut off from support under the reforms would return to work, the treasurer said, but he also foreshadowed some would shift onto federal programs like the NDIS.
“That is the reason why there is a DSP [Disability Support Pension] and other forms of federal assistance and support. We are not expecting those numbers to be particularly high,” he said.
Asked how many injured workers would no longer access compensation under the reforms, Mookhey did not provide a figure, instead saying “we’ve provided multiple scenario analysis extensively to the parliament”.
“The government has been incredibly candid and incredibly transparent about how this scheme is going to be expected to work, but you’re right to say it is complex, and so we’re happy to provide as many scenario analyses we have,” he said.
Tudehope was subjected to a sustained attack by Business NSW over his opposition to the government’s reforms, later conceding the campaign had caused concern to his colleagues.
Loading
Business NSW chief executive Dan Hunter had pleaded with MPs to resolve the impasse to ensure businesses did not go into Christmas with the threat of increased premiums hanging over their heads. On Thursday, he praised the deal as a common-sense approach.
A senior Liberal MP, who was extensively briefed on the changes but not authorised to speak publicly before the announcement, said it was a new approach for the opposition.
“We have returned to core Liberal values – backing enterprise, small business and fiscal responsibility,” the MP said.
“Kellie managed to achieve even greater protections for workers than either the unions or independents could convince Mookhey to accept. It’s a win-win – great for business and good for workers.
“This is a new standard for how the opposition will engage. We won’t be another party of protest. There is a newfound seriousness about returning to government.”
After the government failed to reform the workers’ compensation scheme, Premier Chris Minns said efforts to limit workers’ compensation insurance premium rises were “over” and he attacked the Coalition as the “so-called party of small business”.
Start the day with a summary of the day’s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter.
