NSW COVID-19 workers compensation provisions to be wound back

NATIONAL NEW SOUTH WALES

After a robust discussion between MGA NSW members, NSW Small Business Commissioner Chris Lamont, and MGA in October 2021, it was decided to write to the then NSW Treasurer Dominic Perrottet and the Minister for Small Business and Finance Damian Tudehope, to advocate for a repeal of COVID-19 related workers compensation laws that could be detrimental to members, as well as cause massive workers compensation insurance premium increases in years to come.

The 2020 workers compensation amendments were a product of the pandemic and restrictions prevailing at the time. The amendments were included in part of Emergency Provisions Bills, covering a range of short-term adjustments to statutory provisions, to overcome problems created by the drive to eliminate COVID-19.

The presumptive liability provisions introduced in July 2020 are no longer appropriate given the widespread opening of the economy and free access to vaccination for COVID-19. When introduced, the provisions went further than similar laws in Australia or the world.

The NSW Government introduced legislation in early December 2021 to wind back the workers compensation which presumed liability provisions for COVID-19, was both timely and MGA believes sensible. Now is the time to revert to the normal principles for workers compensation liability for COVID-19 under which workers can still claim for work-related infection.

The public health strategy, risks of exposure and vectors of transmission for COVID-19 have all changed substantially since July last year. To continue to hold employers in some industries automatically responsible for an employee’s COVID-19 infection is no longer sustainable. This is unfair and defies common sense to assume COVID-19 is likely to have been caught at work.

To continue the presumed liability provisions risks significant unfair financial stress on the workers compensation scheme and employers in the industries covered by the s19B presumption.

MGA thanks the NSW Government for responding to this very serious issue in a timely and expedient manner.