The NSW Liberals and Nationals have secured major improvements to the Minns-Labor Governments flawed Workers Compensation reforms by delivering stronger protections for injured workers and preventing further premium hikes for small businesses and charities.
Under the agreement, iCare premiums will be frozen for 18 months, injured workers will receive additional medical and income support, and funding for return-to-work programs will increase.
The Member for Terrigal, Adam Crouch said the deal provides vital certainty for Central Coast businesses and ensures vulnerable workers are not left behind.
“Local businesses have been crying out for stability, and injured workers deserve proper support, not cuts,” Mr. Crouch said. “This agreement delivers both.”
Key outcomes secured by the Liberals and Nationals include:
- iCare premium freeze for 18 months, preventing any average premium increases.
- Improved support for seriously injured workers, including an extra 52 weeks of medical benefits and 52 weeks of income replacement.
- Enhanced return-to-work assistance, including retraining, mentoring, and specialist case management.
- Retention of the Whole Person Impairment (WPI) threshold at 25% from July 2026, instead of Labor’s proposed 31%.
- A safeguard allowing reasonable management action to be considered where it is the significant cause of injury.
- A legislated premium cap that will remain until the Chief Psychiatrist completes a new clinical assessment model for psychological injury.
- A commitment to develop a successor to Business Connect, ensuring continued support for small enterprises.
The Leader of the Opposition Kellie Sloane said the agreement significantly improves Labor’s original proposal, which would have reduced entitlements for workers, particularly those with psychological injuries.
“Our consistent position has been that reform must target rorts, inefficiencies and poor return-to-work outcomes, not cut supports for the most vulnerable,” she said.
“Neither side got everything it wanted, but these changes deliver stronger protections and greater stability than the Government’s starting point.”
NSW Nationals Leader Gurmesh Singh said the outcome provides essential relief for regional and small businesses.
“Premiums have skyrocketed under the Minns Labor Government, putting enormous pressure on local employers,” he said.
“Our amendments lock in a firm limit on the premiums and give businesses much-needed certainty as we head into the Christmas period.”
Adam Crouch said the Opposition will continue pressing for deeper long-term reform.
“This stabilises the system today, but it doesn’t fix the structural failures Labor has allowed to grow,” he said.
“It speaks volumes that not one Central Coast Labor MP spoke in Parliament about the original appalling legislation but voted in support of it anyway.”
“I’ll continue holding the Government accountable until NSW has a workers compensation system that is fair, compassionate and financially sustainable.”
The NSW Liberals and Nationals have reaffirmed their commitment to long-term reform to ensure stability for businesses and fair treatment for injured workers across the state.