A whistleblower who helped expose failings in a scheme protecting 3.6 million workers feels betrayed by the treasurer charged with reforming the system.
Enough time has passed since Chris McCann helped expose issues in Australia's largest workers' compensation scheme that a newspaper front page about it - framed in NSW Treasurer Daniel Mookhey's office - has begun to yellow with age.
But the paper's colour is not the only thing that's changed over time, Mr McCann says.
The former head of compliance, fraud and corruption control at the state's workplace insurer said he was "flabbergasted and disappointed" about Mr Mookhey's approach to reforming icare NSW.
"I don't think words can really describe how I feel about how much he has changed," Mr McCann told ABC Radio on Wednesday.
He said the pair spoke regularly when Mr Mookhey was in opposition, pursuing the coalition government and the architect of the insurer, former premier and treasurer Dominic Perrottet.
"Once he discovered there was a lot of corruption, theft, conflicts of interest ... he needed information on icare so he could make a point in parliament about what was going on," Mr McCann said.
But several years and a change in government later, Mr McCann feels "totally betrayed" as Mr Mookhey tries to overhaul a scheme he warns faces an existential threat due to spiralling costs.
The treasurer, backed by business groups, argues the system could collapse if the threshold for psychological claim payouts is not increased.
Lawyers and unions warn the proposed threshold could exclude nearly all workers' mental health claims.
"When I learnt about the changes that were being proposed, it was a complete turnaround and a backflip from what he had said to me," Mr McCann said.
Mr McCann appeared at a parliamentary inquiry on Tuesday probing a bill to amend the scheme, warning the government would have "blood on its hands" if the changes go ahead.
The proposed changes would raise the "whole person impairment" threshold for people with psychological injuries in a way some have warned could exclude virtually all psychologically injured workers from accessing support.
More than 3.6 million workers are covered by nominal insurer icare NSW, a million more than Victoria's WorkCover.
Another fund covers most of the state's 450,000 government workers.
The treasurer said he respected Mr McCann, all injured workers, and their right to disagree with the government's proposed reforms.
He insists changes are necessary after years of deterioration.
"The scheme's position is dire, with injured workers and small business having to pay the price," he said in a statement on Wednesday.
"We want a workers' compensation system that gets people back to work, with premiums small business can afford.
"Right now, we have neither."
He has previously warned the scheme is at risk of insolvency, holding only 82 cents in assets for every dollar it expects in future claims, a position expected to deteriorate further when re-evaluated in 2026.
Total claim costs reached $5.3 billion in the 2023/24 financial year.
Premiums paid by businesses have been rising annually by an average of eight per cent recently, a cap set by the state government.
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