THE WORKERS COMPENSATION THAT JUST PASSED THE UPPER HOUSE IS DEVASTATING 

Exposed: How the Minns Government Slipped the Most Dangerous Workers Comp Change in a Decade Through Parliament

While everyone was distracted by the 25% vs 30% WPI debate, the Minns–Mookhey Government quietly rolled a Trojan Horse into NSW workers compensation: a new 130-week hard cut-off for primary psychological injuries. Even with the Opposition restoring the old 21% threshold, the reality remains that fewer than 1–2% of psychological injury claimants ever reach 21% WPI and almost none reach MMI early enough to be assessed before the cut-off. With no broad grandfathering, no real transitional protections, and a structurally impossible timeframe, this reform is designed to push injured workers off a cliff long before they can be fairly assessed. Insurers don’t need to defeat claims they just need to delay, deny, and defend until the 130 weeks expires. The shorter the entitlement period, the bigger the margin for insurers and Treasury. This isn’t “modernisation”; it’s strategic abandonment.

And here’s the part many insiders are already warning about: physical injuries may be next. Once a 130-week time limit is normalised in one part of the system, Treasury will inevitably push for “consistency” and “alignment across injury types.” The 130-week model becomes precedent and the slippery slope begins. This reform is far more dangerous than the public realises, and unless the Legislative Assembly reverses course, NSW is headed toward the most aggressive workers compensation contraction since 2012. The fight cannot stop here.

I will personally opine here not often done, as I usually stick to the facts! The transitional provision will be, it will all take effect 1 July 2026. Sold as; to allow those on the system to do what they need to do to get out via commutation etc. Although, my belief is it is so it isn't a Christmas time news story and they have to prepare the legal panel to defend their IME's. As well as to really become tactical and strategic in nature in operationalizing this change.

 **Disclaimer - this is not legal advice or opinion just an educated layman's take on what just transpired in the Parliament of NSW.

More can be read on LinkedIn at https://www.linkedin.com/posts/richardhoskins_nsw-workerscompensation-injuredworkers-activity-7395605694562881538-_5tH?utm_source=share&utm_medium=member_desktop&rcm=ACoAAAFyUE4B4idQQ68I5xCDWLgSTRVBAXBUJX8