Background
The NSW Legislative Council has debated and amended the Government’s Workers Compensation Bill. The most significant amendment is the complete removal of the proposed changes to Whole Person Impairment (WPI) thresholds, which would have drastically reduced long-term medical rights for injured workers. The amended bill has now been returned to the Legislative Assembly for consideration.

What Has Happened?
The Upper House voted to strip out the WPI provisions after extensive debate, evidence, and advocacy from injured workers, unions, legal experts, and community stakeholders. This represents a decisive rejection of the Government’s modelling and rationale for raising the threshold to 30 percent.

What Happens Next?
Under parliamentary process, the Lower House must now choose one of the following:

Accept the Upper House amendments.
The bill will pass immediately without any changes to WPI. This outcome preserves existing long-term medical rights and reflects the will of the Upper House.
Reject the amendments and return the bill to the Upper House.
This triggers a legislative dispute between the two chambers (“ping-pong”), resulting in negotiations, delays, and potential collapse of the bill. The Government would need to convince crossbench members to reverse their position a difficult task given the strength of the amendment.
Withdraw or delay the bill.
If the Government cannot secure support for its original WPI proposal, it may choose to pause or abandon the reform until 2026.
Why the Amendment Matters
The removal of the WPI changes signals serious concerns about fairness, evidence, and impact. It acknowledges that:

• The proposed threshold would exclude almost all injured workers from long-term medical coverage.
• The Government did not provide adequate modelling or consultation.
• The reform disproportionately harms those with severe physical and psychological injuries.
• The fiscal justification was weak and the social cost enormous.

What Should Happen Now?
The NSW Government should accept the Upper House’s amendment and pass the bill without any increase to the WPI threshold. This approach restores balance, maintains fairness, and upholds the rights of injured workers while allowing other, non-controversial reforms to proceed.

Call to Action
Parliament now has an opportunity to protect injured workers by rejecting harmful, unsupported changes to WPI. Advocates, MPs, and community leaders must continue to urge the Government to accept the amendment and ensure the final legislation prioritises people, not savings.