Changes to NSW mental compensation laws set to increase GP burden

3 minute read


And Unions NSW has expressed its concerns regarding proposed laws to psychological injury claims eligibility.


Many unions across NSW have expressed their concerns recently regarding an upper house inquiry into proposed changes to workers compensation for psychological injuries.

Similar changes have already been made to Victoria’s WorkCover scheme that saw GP patients with short-term stress become ineligible, along with scheme recipients having to apply for additional eligibility after 130 weeks.

The implementation of similar changes has been heavily criticised by the unions who have expressed that while reform to mental health compensation is a need, it must be done in consultation with the unions.

“We’re talking about life and death decisions,” said Unions NSW Secretary Mark Morey in a statement.

“The government claims this is about financial sustainability, but their 30% impairment threshold would abandon 95% of psychologically injured workers… many of whom are already contemplating suicide.”

In a survey published by Unions NSW, it was found that 60% of frontline workers are regularly exposed to trauma and traumatic events.

Over 80% of participants believed that proposed changes would force injured colleagues back to work before it was safe, with respondents also warning of suicide risk if support was cut off.

“The system is already traumatic for injured workers who have to repeatedly prove they’re suffering,” said Morey in a statement.

“These changes would make that process virtually impossible for the vast majority of psychological injury claims.”

The NSW government is aiming to pass the changes by 1 July, with Unions NSW offering a five-point alternative plan aiming to improve the financial sustainability of psychological-related compensation.

“There’s a better way forward that doesn’t involve abandoning our essential workers,” Morey said in a statement.

“When 97% of workers are begging for better mental health support instead of compensation cuts, the government needs to listen before it’s too late.”

“The Minns Labor Government is committed to strengthening a culture of prevention, early intervention, and effective return to work through a series of reforms,” said NSW minister for industrial relations Sophie Cotsis.

“These include major reforms to SafeWork NSW, such as expanding the psychosocial inspectorate, and industrial relations reforms that establish a ‘stop bullying’ jurisdiction.”

For GPs, the proposed changes with applications for compensation eligibility are expected to require GP input and evaluation, adding to the administrative burden crisis that is already a major frustration in general practice.

This comes from the proposed increase of the “whole person impairment” (WPI) threshold to 31% which is expected to exclude most workers with a psychological injury to make a claim.

“To reach 31% WPI, a person would need to demonstrate they’re unable to live alone, care for dependants, or to function in society,” President of the Law Society of NSW Jennifer Ball said in a statement.

“We believe that changing the WPI threshold to 21% would ensure that many workers generally recognised by community standards as being severely impacted by mental ill-health would be able to make a claim, while easing upward pressure on workers compensation insurance premiums.”

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