Charities at stake after fail on workers comp reform
Struggling families and those affected by natural disasters are being warned to prepare for fewer services as steep increases in insurance premiums negatively impact charities and small businesses.
Reforms to curb workers’ compensation claims aimed at reining in spiraling costs were rejected in parliament on Friday.
The changes would make it harder to make claims for psychological injuries such as post-traumatic stress disorder, anxiety and depression in the scheme, which covers more than 3.6 million workers in NSW.
The state government says psychological claims make up 12 percent of workers’ compensation claims but 38 percent of the program’s total cost.
Finance Minister Daniel Mookhey raised the white flag when asked on Monday whether the government would take action to revive the legislation, which it has defended all year as necessary and urgent.
“We will now shift our focus to preparing our charitable sector, our small business sector and others for quite steep increases in premiums,” Mr Mookhey told ABC radio.
Without the reforms, he said insurance premiums in NSW would likely rise “by double digits over at least the next two years” and the government would receive its final advice on the issue on Monday.
“We expect NSW to have the highest premium in the country,” he said.
(Bianca De Marchi/AAP PHOTOS)
He blamed the government’s failure on the state opposition, which he said refused to negotiate on reforms announced in March.
The Liberal opposition did not immediately respond to a request for comment.
The NSW Council of Social Service, the peak body for the state’s social services sector, said struggling families and those affected by natural disasters would suffer from the impasse.
Chief executive Cara Varian said many charities will have to scale back their services and teams during the busy holiday season due to higher premiums.
“As we head into Christmas and expect a major disaster season there too, charities are gearing up but in reality they will be limited by cost,” Ms Varian said.
The Business Council of Australia has called on state politicians to support reforms it says are important.
“Without these reforms, businesses will face additional premium pressures, making it harder to invest, employ and grow,” the body that represents Australia’s largest employers said in a statement on Friday.
Unions NSW said in a statement that parliament’s rejection of the bill was a message to the government to “rediscover compassion and dignity for traumatized and vulnerable workers”.
“This is a missed opportunity to reform the NSW workers’ compensation system to improve it for everyone involved, especially injured workers.S,” Unions NSW secretary Mark Morey said on Friday.
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