O’Farrell Government Agenda and Cuts to Workers Compensation

Audit NSW public sector – cut $3 Billion; Cut business tax by $1.9 Billion; Review work conditions – compare NSW with other states and cut conditions; Audit agreement making; Privatise lots of things including Electricity, Ferries, CityRail & anything that can make $; Contract out lots of things. February 2010:

O’Farrell Government legislative agenda – passed: Occupational Health and Safety Amendment Bill 2011; Work Health and Safety Act 2011; Industrial Relations (Public Sector Conditions of Employment) Bill 2011; Police Amendment (Death and Disability) Bill 2011; Local Government Amendment Bill 2011; Technical and Further Education Commission Amendment (Staff Employment) Bill 2011; Universities Governing Bodies Bill 2011; Industrial Relations (Public Sector Conditions of Employment) Regulation 2012; Election Funding, Expenditure and Disclosures Amendment Act 2012; Electricity Generator Assets (Authorised Transactions) Act 2012; Workers Compensation Legislation Amendment Act 2012.

O’Farrell Government legislative agenda – before parliament: Industrial Relations Amendment (Dispute Orders) Bill 2012; Industrial Relations Amendment (Industrial Representation) Bill 2012; Retail Trading Amendment Bill 2012.

Under O’Farrell NSW has… -Lost thousands of jobs; -Had essential services privatised; -Seen the closure of government services (OIR, Cronulla Fisheries); -Seen pay cuts in the public sector; -Had the ability for unions to campaign politically against these cuts watered down; -Lost protections against injuries at work.

Workers Compensation Amendment Act 2012 Introduced to parliament on 19 th June, passed on 22 nd June and received assent on 27 th June Major cuts have been made to: Weekly payments; Medical costs; Coverage of journey claims; Lump sums and pain and suffering compensation; Occupational disease claims; Legal costs. All these changes are retrospective

Changes are retrospective Changes to weekly benefits, medical costs and duration of payments are to apply as soon as possible to existing claims; Changes to lump sum compensation are to apply to existing claims from 27 June; If you are on Workers Comp, talk to your union to find out how this will affect you.

Weekly payments will be capped Most weekly benefit payments will stop after 2.5 years; Payments will cease after 5 years (unless 20% whole person impairment); Payments will be reduced to 95% from day one, there will be a further drop to 80% at 14 weeks in most cases; Payments will remain at 80% until they are cut completely.

Journey claims will be severely limited Injuries sustained when travelling to or from work will only be covered ‘if there is a real and substantial connection between the employment and the accident or incident’; It is uncertain exactly what incidents will and will not be covered; Previously all injuries on the way to and from work were covered.

Medical expenses cover will be cut Medical expenses will only be paid for a maximum of one year from the date a claim is made or when weekly payments cease, whichever is longer; ‘Seriously injured’ workers who have a 30% whole person impairment are exempt.

Lump sums for injuries will be limited Lump sum payments are only available for very serious permanent injuries (10% whole person impairment); Lump sum payments for pain and suffering have been cut; It is no longer a requirement that an injured worker seek legal advice before accepting a lump sum offer.

Claims on strokes and heart attacks are limited Heart attacks and strokes will not be covered unless the nature of employment gave rise to ‘significantly greater risk’; There is uncertainty as to how this may be applied.

Cover for occupational disease will be restricted Disease will only be covered where employment is ‘the main contributing factor’; Previously there, employment could be one of a number of contributing factors.

Abolition of partners’ claims for nervous shock Previously the spouse, partner or direct relative of someone who has died in a workplace accident can access some cover if they are diagnosed as having nervous shock as a result of the death (eg, if the are unable to work) This has been abolished

Further attacks O’Farrell told Parliament on 19 June the this was just the ‘first stage’; The NSW Government has left open several areas where further cuts can be made ‘by regulation’ which just requires them to upload changes onto the government website.

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