Why NSW Workers Deserve Better: Legal Insights on the Proposed Workers’ Compensation Reforms

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Taylor & Scott Lawyers calls for urgent reconsideration of workers' compensation reforms in NSW

“The proposed legislation abandons vulnerable workers, particularly in high-risk sectors like construction and retail,” said Kimberley Becker, Partner “These changes will punish those with invisible injuries and worsen mental health outcomes across NSW. We stand with the workers and unions demanding a fairer, more humane approach.

At Taylor & Scott Lawyers, we’ve spent 120 years standing beside Unions and injured workers across New South Wales. We’ve seen firsthand how psychological injuries can devastate lives, families, and careers. That’s why we’re deeply concerned about the NSW Government’s proposed changes to workers’ compensation laws—reforms that risk leaving some of the state’s most vulnerable workers behind.

The draft legislation proposes significant restrictions on entitlements for workers with psychological injuries. Chief among them is a cap on weekly compensation payments at just 2.5 years (130 weeks), unless the worker meets the new, 31% impairment threshold which most workers will not reach. This reform would strip away vital income support for thousands of workers who are not yet ready to return to the workforce and who still need support.

We believe this is a fundamentally unfair and short-sighted approach.

Psychological injuries are real. They are often slower to heal than physical ones, and many workers suffer in silence for months before seeking help. Forcing these individuals to meet a high impairment threshold—when most psychological injuries are complex, fluctuating, and not easily measured—places an impossible burden on injured workers and their treating doctors.

Equally troubling is the proposal to require workers who’ve experienced bullying to first take their claim to the Fair Work or Industrial Relations Commission before they can access workers' compensation. This adds a legal hurdle at a time when a worker may be in crisis. These are not just procedural changes—they’re barriers to care.

At Taylor & Scott Lawyers, we represent workers from many different industries. These are people exposed daily to trauma, workplace conflict, unsafe environments, and enormous pressure. The very idea that their mental health matters less in the eyes of the compensation system is deeply unjust.

This is not just a legal issue—it’s a moral one.

The Government says the changes are about the sustainability of the workers compensation scheme. But cost-cutting cannot come at the expense of justice. If anything, the Government should be investing in early support and rehabilitation for psychological injuries reducing long-term costs to the scheme. Cutting support prematurely increases the risk of chronic disability, disengagement from the workforce, and reliance on social services.

We urge the NSW Government to reconsider. We support reform—but only reform that improves outcomes for injured workers, not ones that penalise injured workers and fails to provide them with the support that is required to allow them to return to work.

Our firm stands in solidarity with the unions, medical professionals, and worker advocates who have raised the alarm. We will continue to fight for fair, compassionate, and legally sound treatment of all workers, whether their injuries are visible or not.

If you or someone you know is affected by psychological injury at work, reach out via tayscott.com.au or call us on 1800 600 644. 

At Taylor & Scott Lawyers we’ve got some of the most experienced and respected lawyers in New South Wales. We have successfully won even the most difficult cases and provided thousands of clients with invaluable advice and assistance.

You have rights—and we’ll help you defend them.

Taylor & Scott Lawyers


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