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Nationals and Liberals Halt Changes to Workers Compensation Rules

November 19, 2025 7:28 am in by
Sarah Mitchell MLC NSW Nationals Leader in the Upper House, Kevin Anderson, Member for Tamworth and Deputy Leader of the NSW Nationals, Gurmesh Singh Member for Coffs Harbour and newly elected leader of the NSW Nationals, and Dave Layzell Member for Upper Hunter. Image: Dave Layzell

The NSW Nationals and Liberals say they have successfully prevented the Minns Government from introducing a higher threshold for workers compensation claims relating to psychological injury. The proposal would have lifted the Whole of Person Impairment threshold for long-term support to 31 per cent, up from 15 per cent.

Opposition MPs argue that such a threshold would have effectively excluded almost all workers with severe psychological injuries from ongoing medical and financial assistance. They say the increased threshold would have left people unable to return to work without access to long-term support.

Labor has previously indicated its commitment to supporting injured workers, with 50 Labor MPs signing a pledge before the last state election to maintain medical and financial support for those unable to return to work. Opposition parties say Labor MPs did not divide on the matter when it arose in Parliament last week, avoiding having their individual positions recorded.

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The Coalition maintains that alternative options exist to manage rising workers compensation premiums for businesses. They argue the Minns Government could instruct icare to cap premium increases at or near inflation to ease financial pressure without reducing support for vulnerable injured workers.

Upper Hunter MP Dave Layzell says he supports reform for workers compensation, but insists the Government isn’t interested in helping those in need.

“It is a cost cutting exercise. The workers comp system is at the moment barreling out of control,” said Layzell.

“Reform is absolutely required. And I think if the government was serious in working with us, we could actually do a lot more. But at the moment, it’s being used as a bit of a political football and we’re kicking it back and forth.”

For Labor’s part, Treasurer Daniel Mookhey has a different view on things.

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“The Government will shift its attention now to getting the community ready to deal with some very steep rises in premiums, following the Liberal Party’s decision to block reform,” he said.

“Businesses and charities will be slugged with the worst premiums in the country.

“This situation could have been avoided if the Liberal Party had spent more time working towards a solution and less time playing politics on an issue.”

Dave Layzell MP says it’s all part of politics.

“We all agree that reform has to take place,” he said.

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“The government has their bill. We’re the opposition. We’re pointing out where it has its failures and we’ve made changes to that through the democratic process.

“Now that bill is being sent down to the lower house and we’ve got to see what the government is going to do now going forward.”

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