Critics of NSW WorkCover amendment target compensation changes

The scars from recent cuts to employee benefits provided by the New South Wales WorkCover scheme appear unlikely to fade in the near future. The Workers Compensation Legislation Amendment Bill 2012, which passed parliament on 22 June and assented on 27 June, introduces several changes that are harshly criticised by opponents. Supporters of WorkCover revisions argue that the changes are necessary for preserving the long-term integrity of the scheme altogether. Minister for Finance and Services Greg Pearce expressed his desire for the reforms in June, shortly before the bill was first introduced to parliament. He also voiced his concern that allowing the scheme to continue without reform would lead to severe premium hikes, which would negatively impact the economy. “The workers’ compensation scheme has been costing the state up to $9 million a day and it’s time to put the plan for recovery into action,” Pearce said in a statement on 19 June. “Its $4 billion deficit is spiraling out of control and we simply cannot afford to wait around.” While legislative changes to WorkCover in other regions took effect on 1 July, including those in South Australia and the Northern Territory, employees in New South Wales will begin to switch to the new system in a few months. Workers injured after 1 October, 2012, will receive benefits according to the amended legislation, while workers with existing injuries will transition to the new system in January of 2013, Pearce said in a recent statement. While the bill amended numerous sections in the scheme’s existing legislation, there are a few changes in particular that have caught the attention of the media and critics. Among these is a reduction in the number of weeks that injured employees receive full payout, which was decreased from 26 weeks to 13 weeks to match the policies of other regions. Also included in the bill is a provision for the cessation of all weekly payments to workers after several years, although there are exceptions for certain types of impairing injuries. While the bill did make it through parliament, some politicians have expressed their distaste at the proceedings. David Shoebridge, a Greens member of the NSW Upper House, claimed the bill was “rushed through the NSW Parliament in less than 72 hours”. “The Bill was preceded by a sham Parliamentary Inquiry, dominated by the Shooters, CDP and Coalition, and which reported just 11 days after it was established,” according to Shoebridge’s website. “Any genuine inquiry would have taken at least 6 months. The committee received 353 detailed submissions and held public hearings over just three days.” Sources: 1. Greg Pearce MLC Media Release: “Government Acts on Workers Safety Reform.” 19 June, 2012. 2. Greg Pearce MLC Media Release: “Workers Compensation Changes Underway.” August 7, 2012. 3. Parliament of New South Wales: “Workers Compensation Legislation Amendment Bill 2012.” 4. David Shoebridge MLC: “Barry O’Farrell’s Cuts to Workers Compensation – Get the Facts.” June 22, 2012. 5. NT WorkSafe: “Changes to Workers Compensation Legislation.” About the author: Quentin Coleman is a freelance journalist.