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AAP
AAP
Kat Wong

'Layers of spin' used to push workers comp changes

Changes to one state's workers compensation scheme could be dangerous, a report warns. (Joel Carrett/AAP PHOTOS)

Proposed reforms to Australia's largest scheme to support injured workers have been condemned as being founded on spin to justify a government's "morally vacuous" position.

More than 3.6 million workers in NSW are covered by the state's nominal insurer icare, which has long been plagued by financial difficulties.

The NSW government has proposed urgent changes to the workers compensation scheme to ensure it is sustainable. 

But critics of the changes say they remove support for injured workers, with a parliamentary report published on Monday saying the implications are dramatic, harsh and dangerous and calling the proposed legislation discriminatory.

"The government has chosen to address the issue of financial sustainability by taking the inconceivably lazy and unfathomably cruel measures outlined in this piece of legislation," inquiry chair Abigail Boyd wrote in the report's foreword.

A file photo of Abigail Boyd
Greens MP and inquiry chair Abigail Boyd described the workers comp changes as 'unfathomably cruel' (Bianca De Marchi/AAP PHOTOS)

The Greens MP accused Labor of distorting facts to suit their argument by leaning on COVID-19-era statistics to support their proposed changes.

"It felt at times that the inquiry was having to wade through the layers upon layers of obfuscation, spin and hyperbole by a government seeking to justify its own morally vacuous position," she said.

The changes include cutting off compensation payments for psychologically injured workers with a degree of impairment between 21 and 30 per cent.

But the inquiry found most injured workers with this degree of impairment were not fit to work in any capacity, according to Ms Boyd.

For months, Labor has been attempting to push the bill, saying its changes were urgent to ensure workers have access to support into the future.

"In contrast, the inquiry has not shed light on a viable alternative package of reforms that can ensure the financial sustainability of the scheme," Labor MPs wrote in their dissenting report.

"(The parliamentary report) engages in political commentary, rather than maintain an objective and constructive analysis throughout."

Labor MPs also accused the inquiry of disregarding evidence that was at odds with its findings.

According to preliminary advice seen by the NSW treasurer, icare's June valuation showed a $5.4 billion deficit.

A file photo of Damien Tudehope
The opposition's Damien Tudehope was also heavily critical of the Labor government's bill. (Bianca De Marchi/AAP PHOTOS)

The opposition has backed much of the criticism in the inquiry's report, as shadow treasurer Damien Tudehope accused the state government of attempting to ram the bill through parliament.

"A bill which seeks to solve problems for the workers compensation scheme by taking away entitlements ... is a barbaric way of treating seriously injured workers," he told reporters on Monday.

Prior to the 2023 election, 19 out of Labor's 22 ministers signed a pledge to repeal a five-year cut-off for injured workers and instead fight for a system that "provides ongoing medical and financial support for workers".

Mr Tudehope has urged those politicians to come forward and apologise.

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