NSW to repeal automatic compensation claim for COVID-hit workers

Small businesses are expected to benefit from this the most

BY Dexter Tilo 16 Nov 2021

The New South Wales government is planning on repealing a previous amendment that grants workers an automatic compensation claims if they contract COVID-19 in the workplace. The COVID-19 presumption was an amendment introduced in May 2020 in the Workers Compensation Act 1987, which automatically gives workers compensation rights when they get sick with COVID-19. The mandates previously covered employees in healthcare, education, retail, transport, emergency services, construction, disability and aged care, dining, and entertainment industries.

Premier Dominic Perrotett said the amendment was made at a time when little was known about COVID-19 - and vaccines were not yet available.

"Now we know more about COVID-19 and its transmission, amendments under Section 19B of the Act must be repealed so the workers compensation system is both fair to employees and ensuring businesses aren't hit with an unexpected spike in their insurance bills," Perrotett said in a statement.

As an effect of the 2020 amendment, the Doherty Institute estimated COVID-19 claims could cost the NSW workers compensation system up to $638 million over the coming year. This year’s changes to the amendment, however, are expected to benefit small businesses the most, who the premier said should be focusing on getting new staff and providing higher wages instead of receiving "inflated insurance bills."

The sentiment is echoed by Treasurer Matt Kean, who also said that small businesses have been "hit hard enough by COVID-19 restrictions" and should not be further slowed by "massive, unexpected insurance premium increase."

"If the NSW Government doesn't repeal this amendment, we risk losing jobs just as our recovery is gaining momentum across our State," he added.

The government, however, clarified that amending the COVID-19 presumption will not strip workers of their right to make COVID-19 claims if they contract the disease in the workplace.Minister for Digital and Customer Service Victor Dominello said it will only remove the "automatic" entitlements.