New South Wales Premier Chris Minns has conceded defeat on a key component of the government's workers' compensation reforms after a marathon 16-hour debate in the upper house. The proposed changes, aimed at reducing the cost of the scheme and controlling insurance premiums, were blocked when crossbench MP Taylor Martin withdrew support for a compromise amendment.
The government had sought to raise the 'whole person impairment' threshold for lifetime payments for psychological injuries from 15% to 31%, later offering a compromise of 28%. However, Mr Martin's decision to instead back opposition amendments led to the removal of impairment threshold changes from the bill.
Premier Minns stated, 'It's over,' and warned that insurance premiums would rise as a result. The upper house passed a stripped-back version of the legislation, with the Coalition hailing it as a victory for seriously injured workers. Shadow Treasurer Damien Tudehope criticized the government for targeting vulnerable individuals to achieve savings.
Business NSW CEO Daniel Hunter expressed concern over potential premium increases of up to 36%, urging parliament to reach an agreement before the summer break. Meanwhile, unions welcomed the bill's defeat, with the NSW Nurses and Midwives' Association calling for a more considered approach to reform.
