Reforming Australia's largest workers compensation scheme shouldn't be rushed, critics of planned changes say, as seeking a "better outcome" outweighs concerns over one MP's scandals.
Recent analysis found the NSW scheme could perform even worse under proposals put forward by controversial independent MP Mark Latham, but proponents say existing plans would desert seriously injured workers.
Changes have been delayed amid calls for more scrutiny of the government's plans for workers compensation.
Scrutiny has involved commissioning financial modelling from the state's nominal insurer iCare of the cost of some proposed amendments.
Treasurer Daniel Mookhey said the modelling showed some proposed amendments would "punish workers" and slug businesses with higher premiums.
"My message is clear to the Liberal Party: side with small business, side with victims of sexual harassment. Don't side with Mark Latham," Mr Mookhey told reporters on Friday.
Mr Latham, joined by his dogs, told reporters on Friday afternoon the proposed amendments were not set in stone and accused the treasurer of trying to rush reform.
"It makes sense to do this once and get it right.
"Hopefully the parliament won't have to look at this again in the future," Mr Latham said.
The opposition has been criticised for working with Mr Latham after sexual abuse allegations were levelled against the independent MP earlier in July.
Mr Latham denies the allegations, which are contained in a private application for an apprehended domestic violence order to be heard in court on Wednesday.
The one-time Labor prime ministerial candidate has also been accused of taking photos of female parliamentary colleagues without their knowledge, which he apologised for.
The financial analysis reports that proposed amendments put the burden on victims of sexual and racial harassment, as well as bullying, to prove their perpetrator intended to harm them.
"The need to prove intent of the perpetrator to harm would effectively remove all types of bullying and harassment from the schemes," the report says.
It also says the private-sector workers compensation scheme would be $800 million worse off by 2029 under the amendments than it would be under the government's plans.
But shadow treasurer Damien Tudehope said the plan would deliver almost as much in savings as the government's proposals.
"However, ours does not desert seriously injured workers, and that's the difference," he told reporters.
Mr Tudehope said he could condemn Mr Latham's behaviour while continuing to engage with him on policy matters.
"Mr Latham has tainted the whole of this process ... and it does make it more difficult because he has been involved," he said.
"But it doesn't mean that a member of the committee should not make a contribution to getting a better outcome."
An inquiry has been called into the workers compensation scheme, in which Mr Latham has taken part, with a committee hearing scheduled for Tuesday.
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