19th November, 2025.
I speak to the Workers Compensation Legislation Amendment (Reform and Modernisation) Bill 2025, which promises efficiency but risks abandoning our most vulnerable workers—a very delicate balance of people grappling with psychological injuries and small business sustainability. I am grateful for the consultation offered by the Treasurer and the Government in briefings on the bill and the work of the Minister. I am grateful for their willingness to engage and commit to dialogue. However, I must respectfully oppose the bill as it is offered at this point in time.
I thank Karena Nicholls of Coutts legal firm for her assistance and information on what it is like on the ground for workers and for lawyers representing those most damaged. The advice comes from someone who represents 150 workers—60 with psychological claims. Karena Nicholls, a seasoned practitioner since 2004, warns that undefined terms create complexity, uncertainty and delay. We all want to help workers, some of whom are desperate to heal and return to work but their recovery is stalled by very poor communication and a worker‑versus-insurer mentality. A huge worry for community workers is that raising the whole person impairment threshold could lock out hundreds of them from support. Karena describes the danger that those failings could lead to suicidal clients and also the long time frames of assessments, with at least a two-month waiting period for urgent help.
The Government's briefings highlighted some adjustments being made, such as removing the tribunal requirement, introducing merit reviews by expert panels and ensuring that workers do not repay 75 per cent pre‑injury payments if found ineligible. Those are steps forward to encourage return to work stopping over prolonged disputes. The other side of the debate is that premiums are set to rise: some $4.25 billion in 2026 climbing to $5.34 billion by 2028. Businesses in Wollondilly are already stretched and face higher costs. I am not sure that there is clear evidence that the reforms will stabilise the scheme into the future. Also, past Government decisions to reduce premiums and divert Treasury Managed Fund surpluses should not now penalise injured workers.
The amendments that are about to be presented by my colleague Mr Alex Greenwich offer some hope. I hope they address the core issues and that a system will be developed that supports workers and does not obstruct their recovery. I urge the House to pause and think. I know it is hard to put aside politics and collaborate on a system that balances sustainability of business and also looks after injured workers. Both groups deserve a system that works for them—on the one hand, a system that heals, not one that hurries workers out the door, and, on the other hand, keeps the doors of businesses open.