Disability sector pleads for workers comp reform
Monday, 28 July 2025
Disability service providers are calling for urgent action to reform NSW’s failing workers compensation system, with some fearing they are just a claim away from closing their doors on some of the state’s most vulnerable people.
The NSW Government will today convene a roundtable at the request of providers to hear from more than twenty organisations who report that soaring premiums and delayed action are forcing them to make tough choices about the communities they serve.
One provider in Western Sydney says an 800 per cent hike in premiums over the past five years is threatening its ability to continue disability and aged care services.
Others report having to divert funds from their disability support programs to pay premiums, and in one case, a provider has relocated part of its office to a family home to save on costs.
The sector is imploring the NSW Government to take urgent action to address the rise in psychological injuries and create a sustainable system.
Disability service providers will today meet with Premier Chris Minns, Treasurer Daniel Mookhey and Industrial Relations Minister Sophie Cotsis to voice their concerns about any further delay on reform.
The Minns Labor Government’s workers compensation reform package passed the Legislative Assembly in early June, before being delayed by the Liberal Party which has teamed up with Mark Latham and the Greens to block progress.
Analysis by icare shows co-authored amendments by Shadow Treasurer Damien Tudehope and Mark Latham would cut off almost all victims of harassment, bullying and vicarious trauma from support, and still deliver higher premiums to NSW businesses.
Every day that Mr Tudehope and Mr Latham continue to block reform, the workers compensation system deteriorates further.
- Just 50 per cent of workers with a psychological injury can return to work within a year, compared to 95 per cent of workers with a physical injury.
- The private sector scheme is going backwards by $6 million per day. It is soon expected to hold only 80 cents in assets for every dollar it will have to pay in claims.
- Absent reform, 340,000 NSW businesses will have to pay a 36 per cent increase in premiums over the next three years even if they have no claims against them.
Treasurer Daniel Mookhey said:
“Providers who care for some of our most vulnerable citizens are telling us they can’t keep going under the strain of this broken system.
“Every day that reform is delayed – the system is only deteriorating further.
“The proposals put forward by the Liberal Party and Mark Latham would leave these providers paying higher premiums.
“The sooner we enact reform, the sooner we can get on with preventing psychological injuries in the workplace, rather than simply compensating for injuries which could have been avoided.”
Minister for Industrial Relations Sophie Cotsis said:
“The Minns Labor Government recognises the challenges faced by NGOs and disability service providers, many of whom are grappling with rising workers compensation premiums while operating under fixed funding models.
“We are actively engaging with these sectors to ensure their voices are heard, and to work toward a fairer, more sustainable system that supports both workers and essential community services.
“The Minns Labor Government is committed to strengthening a culture of prevention, early intervention, and effective return to work through a series of reforms.”
Philip Petrie, CEO Allevia said:
“Rising insurance premiums are a major threat to our ability to stay open and we are always just a claim away from shutting up shop forever.”
Heather Hollingworth, CEO BCD said:
“BCD, a disability and aged care services provider has faced an 800 per cent increase in workers compensation premiums over the past five years, threatening its viability.
“Despite minimal claims and strong safety practices, BCD urges urgent reform to ensure fairer premiums and protect essential community services.”
Jo Kernot, CEO Anowah Community Living Ltd said:
“We’re not asking for exemptions—we’re asking for fairness. This system, as it stands, will cost NSW its most trusted disability providers.
“Without urgent reform, this system will collapse essential services.”
Jake Ferretti, CEO Genovation said:
“We’ve had to host our admin team from our family home just to stay afloat.
“If reform doesn’t happen, it’s not just services at risk – it’s the people, staff, and families who rely on us.”
