Small businesses using everyday tools like spreadsheets might face union inspections under NSW’s Bill. Matthew Addison says reforms go far beyond gig economy concerns.
What’s happening: The NSW Government’s Workers Compensation Legislation Amendment Bill 2025 proposes that employers using any digital work system, including algorithms, artificial intelligence, automation, online platforms or software, must ensure those systems do not cause stress or overwork. The COSBOA has condemned Schedule 4 of the reforms, warning they grant unions open-ended rights to access small business systems and data whilst the broader Bill faces fierce opposition over psychological injury provisions.
Why this matters: Without reform, the premiums paid by businesses are set to increase by 36 per cent over three years to 2028, and the Government’s reforms will ensure businesses are not hit with an unnecessary $1 billion per year insurance premium increase. However, the Bill’s digital work system definition could apply to many businesses using everyday tools like rostering and scheduling software, creating uncertainty for operators across hospitality, retail and trades sectors who could face union inspections of systems containing commercially sensitive data.
The NSW Government’s proposed workers compensation reforms have sparked fierce opposition from small business groups and industry bodies, who warn that broadly worded provisions could expose ordinary business software to union oversight whilst creating unmanageable compliance burdens amid a compensation system financial crisis.
The NSW Government introduced the Workers Compensation Legislation Amendment Bill 2025 to the Legislative Assembly on 6 August 2025, driven by what Treasurer Daniel Mookhey describes as an unsustainable situation. Since 2018, the number of psychological claims has doubled, and since 2020, the average cost of psychological injury claims has almost doubled.
Read more here: https://dynamicbusiness.com/featured/everyday-business-software-could-trigger-union-inspections-under-proposed-nsw-law.html