NSW workers Compensation Reforms face Criticism from law Society
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Sydney, Australia – The Law Society of New South Wales (NSW) has voiced strong concerns regarding the state government’s handling of the Workers Compensation Legislation Amendment (Reform and Modernisation) Bill 2025. The Society criticized the government’s decision to proceed with the legislation despite a Legislative Council vote to initiate a thorough inquiry and the subsequent work of the Public Accountability and Works Committee.
The Law Society argues that the current bill, as drafted, poses risks to the liability and entitlements related to psychological injuries, and could negatively impact the overall functionality of the workers compensation system. They are urging a return to the design phase to allow for a more considered and effective scheme for addressing meritorious claims.
Law Society Calls for Inclusive Consultation
The Law Society emphasized the importance of meaningful consultation with a diverse range of experts and stakeholders.They advocate for the use of publicly accessible data to inform any future legislation, rather than a rushed process. In a recent interaction, the Society reached out to members of the opposition and the Greens NSW in the Legislative Council, urging them to carefully consider the concerns raised during the inquiry process.
Jennifer Ball, President of the Law Society of NSW, stated that the Society’s submission to the inquiry outlined specific concerns that should be addressed before the bill is passed. These concerns center around potential negative impacts on psychological injury claims and the broader workers compensation framework.
The law Society’s concerns stem from a belief that the current bill lacks the nuance required to effectively address complex workers compensation issues. They believe a more collaborative and data-driven approach is necessary to ensure a fair and sustainable system for both employers and employees.
Background on NSW Workers Compensation
New South Wales’ workers compensation scheme provides financial assistance and support to employees who suffer work-related injuries or illnesses. the scheme is funded by levies paid by employers and aims to cover medical expenses, lost wages, and rehabilitation costs. Historically, reforms to the scheme have been frequent, frequently enough driven by concerns about rising costs and the need to balance the interests of employers and employees. Recent trends have focused on addressing the increasing prevalence of psychological injuries in the workplace and improving the efficiency of the claims process. The current proposed amendments represent the latest attempt to modernize the system and address ongoing challenges.
Frequently Asked Questions about NSW Workers Compensation Reforms
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What are the main concerns regarding the Workers Compensation Legislation Amendment (Reform and Modernisation) Bill 2025?
The Law Society’s primary concern is that the bill, in its current form, could negatively impact the liability and entitlements for psychological injuries and disrupt the operation of the broader workers compensation scheme.
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Why is the Law society advocating for a return to the design stage of the bill?
The Society believes a more nuanced and improved scheme for meritorious claims is needed, and this requires revisiting the initial design phase to allow for thorough consideration of all factors.
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What role does inclusive consultation play in effective workers compensation reform?
The Law Society emphasizes that meaningful and inclusive consultation with diverse experts and stakeholders is crucial to ensure any future bill is relevant, effective, and supported by publicly accessible data.
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How does this bill affect psychological injury claims in NSW?
The Law Society fears the bill will needlessly affect the liability and entitlements for psychological injuries, potentially making it more arduous for workers to receive the support they need.
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What was the Legislative Council’s role in this process?
The Legislative Council voted to initiate an inquiry into the proposed legislation, and the Public accountability and Works Committee conducted a thorough review, including public hearings and submissions from stakeholders like the law Society.
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Where can I find more information about the Law society’s position on these reforms?
You can find the Law Society’s media release and statement from President Jennifer Ball at https://www.lawsociety.com.au/statement-president-law-society-nsw-jennifer-ball-
