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NSW to legislate workers' comp review reforms

The NSW Government says it will introduce legislation covering a further eight recommendations from the McDougall review into state-owned insurer icare and workers’ compensation regulation.

“We are taking the next steps to deliver a stronger and better worker’s compensation scheme with these changes, addressing scheme wide issues identified by the review,” Treasurer Dominic Perrottet said.

“This legislation will build on the significant change already underway at icare to lift the performance of the organisation and improve the foundations of the worker’s compensation scheme to ensure its support for people when they are at their most vulnerable.”

The McDougall Review handed down on April 30 included 35 recommendations, accepted immediately, that icare and the State Insurance Regulatory Authority (SIRA) were able to implement without legislation.

The proposed legislation covers terms of directors, clarifies SIRA powers in relation to icare and the Nominal Insurer scheme, adds policy objectives in the State Insurance and Governance Care Act and clarifies the objectives, roles, powers and functions of icare, SIRA and SafeWork.

SIRA will also carry out further public consultation on four McDougall recommendations dealing with threshold tests for entitlements, entitlement to medical treatment and access to lump sum settlements.

The Government plans to introduce a single bill to address all the legislative changes required, including any arising from the consultation.

The NSW Legislative Council Law and Justice Committee also released its report on the 2020 Review of the Workers Compensation Scheme at the end of April, with recommendations for legislative changes overlapping with those from the McDougall review.