The NSW Government has recently introduced several important changes to workers compensation arrangements.
Increases in Lump Sum Compensation
For all injuries sustained on or after 1 January 2006 there will be an increase in the benefit payable to workers who sustain spinal injuries that result in permanent impairment by an additional 5% lump sum in dollar terms.
Improved Dispute Resolution System
In legislation passed by the NSW Parliament on 30 November 2005 amendments have been made to the NSW workers compensation legislation to improve the dispute resolution process.
See Improved Dispute Resolution for more information.
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Although the current definition of ‘worker’ is clear to the majority of employers in NSW, a number of employers have been seeking greater certainty for some time.
For over a year the NSW Government has been working to resolve the uncertainty surrounding the definition of ‘worker’ and has been consulting broadly on this matter.
Amendments approved by the NSW parliament on 30 November 2005 make it easier for employers to comply with the workers compensation system. These amendments will assist employers by providing clarity on who is a ‘worker’ and will improve the wage audit system, making it simpler and fairer for employers.
In January 2005, WorkCover released a discussion paper - Definition of a Worker, which proposed to clarify the definition of ‘worker’ under the Workplace Injury Management and Workers Compensation Act 1998 and consulted with key stakeholders, including union and employer groups and held public discussion forums in both Sydney and regional areas.
A large number of diverse responses to the discussion paper was received and a panel was established in May 2005 to advise the Government on possible changes to this key definition within workers compensation legislation.
The Panel was chaired by the Honourable Dr James Macken AM, former Judge of the Industrial Commission of NSW and included representatives from small business, employer groups and unions.
Panel members were unable to agree on a definition of ‘worker’ that could be applied to all situations. However, a number of recommendations were detailed in a report prepared by Dr Macken.
See the summary document on Premium Compliance for more information.