Overview

• Lower house approved the bill’s second reading on June 3, sending the legislation to the Legislative Council for further debate.
• The proposal raises the permanent whole-person impairment threshold from 21 percent to 30 percent, tightening eligibility for lifelong support in psychological injury claims.
• NSW Liberals, Nationals, Greens, Unions NSW and the Law Society of NSW opposed the reforms over concerns many injured workers will lose access to long-term benefits.
• Insurance and Care NSW and Treasury estimates show only 27 psychologically injured workers would meet the new 30 percent threshold.
• The government says the changes are needed to curb escalating payouts from the state’s self-insurance fund, but critics fault the fast-tracked review process.