Overview

• The NSW government is proposing to raise the psychological injury impairment threshold from 15% to 31%, sparking criticism that most workers with mental health injuries would be excluded from compensation.
• New requirements would compel victims of workplace harassment to secure court or tribunal findings before filing claims, further complicating access to support.
• Treasurer Daniel Mookhey has ruled out additional cash injections into the struggling workers’ compensation fund until legislative reforms are passed, citing a $2.6bn writedown in the upcoming state budget.
• Unions and legal groups argue the changes would strip rights from workers, with Unions NSW estimating that 95% of psychologically injured workers would be unable to make claims under the proposed thresholds.
• The parliamentary inquiry, now underway, is hearing evidence from government officials, unions, and experts, with debate centering on balancing fiscal sustainability with adequate mental health support for workers.