Workers comp cut 5% in NSW - but lawyers get the boot

Commerce Minister, John Della Bosca, announced a planned cut of 5% to NSW workers compensation premiums, and setting aside of $250m to increase benefits to injured workers, to apply from 30 June this year, if Labour wins Saturday's State election.

However the increased role demanded by lawyers in the system via common law claims has not been accommodated.

Della Bosca said a regular six monthly workers comp scheme valuation had shown that the moves were affordable. The Workers Compensation Board is now undertaking a review of the benefits that injured workers currently receive.

Premiums have been cut by 25% over the past 18 months representing an annual saving to businesses of $675m dollars.

A major business organisation, NSW Business Chamber, welcomed the changes but hit out at attempts by lawyers to broaden the role of common law claims in the system, which are now restricted to workers with very significant injuries.

'The reforms to the scheme are working and NSW businesses will fight any attempts to overturn or water down the reforms', said Kevin MacDonald, CEO of NSW Business Chamber. 'The lawyers campaign against these reforms is all driven by a desire to turn the scheme back into a lawyers' honey pot.

'We cannot go back to the bad old days of spiralling workers compensation and insurance premiums and sky high legal costs eating up the payouts of the injured.'

MacDonald said the reforms are working and businesses and community groups are all benefiting from reduced premiums.

He also stated 'The lawyers campaign has no support within Government, no support within the Opposition and is opposed by business and the broader community'.