ClubsNSW, the Australian Hotels Association (AHA) NSW, Restaurant and Catering Australia, the Australian Childcare Alliance (NSW), and the Pharmacy Guild NSW have thrown their support behind the NSW government’s decision to reform the way the NSW workers compensation system handles psychological injury.
The NSW government has introduced the Workers Compensation Legislation Amendment Bill 2025 to Parliament to address the lack of focus on preventing psychological injury, the low rate of recovery and return to work for psychological injuries, and the sharp rise in premiums.
“We are creating a modern system that will better protect workers from psychological injury and provide better help when they need it,” NSW Treasurer Daniel Mookhey said.
“I want to ensure that future generations of workers across NSW have a workers compensation system they can rely on. As the workplace evolves, our capacity to support people in it must adapt accordingly.”
Specifically, the amendments include adding “excessive work demands” as a new compensable cause of psychological injury and expediting eight-week claims assessment process for psychological injuries caused by bullying or harassment.
According to the state government, currently, half of workers with psychological injury claims return to work within the first year. The average cost of these claims has jumped $100,000 in five years to almost $300,000, and businesses are facing a 36 per cent increase to workers compensation premiums.
“We applaud the Minns Labor Government for taking decisive and immediate action. The case for this workers compensation reform is clear and we do not need another inquiry. We encourage the NSW Parliament to seize this opportunity for bipartisan reform, creating a fair system for businesses and injured workers,” ClubsNSW CEO Rebecca Riant said.
The five industry groups have stated the cost of inaction is too high, and delaying these reforms would harm workers, increase financial pressure on businesses, and undermine public confidence in the system.
“Without reform, our members are going to be hit with premium increases of up to 36 per cent, placing even more pressure on already stretched sectors,” they said.
It comes as Fair Work Commission announced it will increase to the national minimum wage and minimum award wages by 3.5 per cent. This will mean the national minimum wage will be $948 a week or $24.95 per hour.
The increase will apply from the full pay period starting on or after 1 July 2025, the same date when the superannuation guarantee increases to 12 per cent.
Hospitality concierge to support regional NSW clubs
Additionally, the NSW government’s Hospitality Concierge has launched a new regional and remote outreach program to provide licensed venues guidance on how to grow their business.
The Hospitality Concierge is a free service offered by Liquor and Gaming NSW to help licensed venues access to government incentives and navigate liquor licensing, planning, and gaming reforms.
Hospitality and racing NSW director of industry and community engagement Melanie Brown said the new regional and remote service involved personalised on-site visits to businesses. During a three-day tour last month, the team visited pubs and clubs in the Edward River and Wenworth regions, including in Jerilderie, Moama, Tooleybuc and Barham.
“We were keen to meet hospitality business owners in areas that have traditionally been harder to reach,” she said.
“We wanted to make sure they were aware of the government’s various incentives and how to take advantage of them, as well as hear their specific needs and suggest ways we may be able to assist.
“We began by calling venues in remote areas along the southern border, from Moama to Tooleybuc to Wentworth, to offer support with things such as licensing and approvals for outdoor dining.
“We then travelled to the region and met with members of the Murray River Council Southern Liquor Accord at Moama RSL and then visited business owners at 15 venues, many of which we hadn’t previously engaged with, and saw their operations first-hand.”
The Hospitality Concierge’s regional and remote outreach program will continue engaging with licensed venues, targeting those in the Ballina/Byron and Bega regions later this year.