The NSW Government has passed reforms to its dispute resolution scheme for workers’ compensation claims.

The calculation of earnings prior to injury has been simplified – addressing a major source of compensation disputes.

And mandatory insurer internal reviews for work capacity decisions have been removed.

The reforms establish two key pathways for lodging complaints or inquiries.

The Workers’ Compensation Independent Review Office will support workers and the State Insurance Regulatory Authority (SIRA) supports employers, insurers and service providers.

The Workers’ Compensation Commission has also been established, serving as a one-stop shop for compensation disputes.

Injured workers can turn to the commission for all disputes, including work capacity, medical and liability decisions.

Single decision notices have also been introduced, which more clearly outline decisions and the reason behind them.

The reforms remove anomalies between the Motor Accident Injuries Act and the Workers’ Compensation Act, protecting workers’ compulsory third party settlements by limiting the amount of compensation the worker must pay back to the insurer.

Permanent impairment compensation can now be awarded in some cases without an approved medical specialist.

SIRA’s board has been expanded from three to five members to improve governance.

State Minister for Finance, Services and Property Victor Dominello says the current scheme is unnecessarily complex and needs to be simplified for injured workers.

About $2.7 billion is paid out annually to injured workers in NSW, while only 5% of the 95,000 compensation claims result in a formal dispute.