Hundreds of Central Coast businesses could be forced to close their doors if they have to endure an eye-watering 36% or more increase in workers’ compensation premiums over the next three years, according to Business NSW.
The Workers Compensation Legislation Amendment Bill 2025, intended to protect workers compensation for future generations, has been stalled in the Upper House.
Business NSW says premiums paid by businesses are set to increase by 36% over three years to 2028 unless the reforms are passed.
The Government says the current system isn’t working and is failing injured workers, businesses and the state.
Since 2018, the number of psychological claims has doubled.
Since 2020, the average cost of psychological injury claims has almost doubled.
Under the status quo, just 50% of workers with psychological claims are back at work within a year.
For physical injuries, the rate is 95%.
The Government’s reforms will ensure businesses are not hit with an unnecessary $1B per year insurance premium increase.
Business NSW Regional Director Scott Goold said spiralling costs associated with the private sector Nominal Insurer highlighted the need to reform the way injured workers were compensated.
“One in five businesses statewide have told Business NSW that they would be forced to shut if subject to the sort of premium increases we are likely to see if there is no reform,” Goold said.
“That should sound alarm bells across both sides of the political aisle.
“On the Central Coast, the outlook is just as dire.”
Businesses were surveyed from May 4-19 as part of the latest Business Conditions Survey.
The survey revealed that likely consequences of premium increases would include: 45% of businesses reducing headcount; 36% scaling back business operations; and 35% placing growth and expansion plans on hold.
A separate survey question found that 71% of businesses want workers’ compensation insurance reform included in the 2025/26 NSW Budget.
“It is simply too easy for workplace grievances and performance management issues to be put on the workers’ compensation scheme,” Goold said.
“The Central Coast is already under pressure from rising business costs and insurance premiums.
“Of businesses surveyed in our region, 63% have had to reallocate budget to cover rising insurance costs.
“Alarmingly, 28% are now underinsured, and 13% have gone without non-mandatory insurance altogether.
“We’re asking the State Government and the Opposition to work together to ensure the proposed reforms pass through NSW Parliament and keep NSW — and the Central Coast — as the best place to start or grow a business.”
it’s clear that the business comes 1st and workers rights last. if business including governments like #Sydney #Trains do not cause injuries due to lack of safety in the workplace and corruption then this issue is resolved. don’t punish the workers you rely on for your business.