At the start of November 2025, the NSW Parliament Public Accountability and Works Committee (the Committee) handed down their report on Labor’s proposed Workers Compensation Legislation Amendment Bill 2025 and Workers Compensation Legislation Amendment (Reform and Modernisation) Bill 2025. The Committee, which was established in 2023 to inquire into and report on NSW government departments and statutory bodies, does not look favourably on the proposed reforms or the way the Bills have been championed by current Treasurer, the Hon Daniel Mookhey MLC.
The report contains 19 findings and 14 recommendations, covering concerns over the Treasurer’s conduct, unconscionable risks for injured workers, a lack of meaningful evidence for the reforms, the impacts of displacing employer liability for safe workplaces, and the failings of key bodies such as SIRA and iCare. Appropriately, the Committee, as well as other stakeholder submissions, highlight that iCare and SIRA are to be held at least partly responsible for the ongoing strain on the scheme, shifting the narrative from one of malingering, injured workers draining public funds to the reality of a scheme management crisis.
We are pleased to see that the Committee ultimately rejects raising whole person impairment thresholds to 31 percent and puts forward a series of recommendations for reform to ensure ethical claims management, compassionate and informed return-to-work processes and further consultation with relevant stakeholders.
The full report can be found at: Public Accountability and Works Committee Report No 5 - Workers Compensation Legislation
