Workers’ compensation lawyer Greg Masselos has warned that proposed changes by the NSW government to raise the threshold for psychological injury claims could have devastating consequences, especially for emergency service workers.
The Minns government is considering lifting the required whole-person impairment level for psychological injuries, such as PTSD, from 15% to 30%.
Masselos called the proposed threshold “incredibly high,” saying, “I’ve never seen anyone get over 30 per cent impairment for a psychological injury.”
He said the move would disproportionately affect frontline workers — including firefighters, police, ambulance personnel and nurses — who are routinely exposed to traumatic events.
“They’re put in a position where they have no option but to encounter … traumatic scenes, dealing with motor accidents, bodies, injured people,” he said. “A lot of them end up with post-traumatic stress disorder.”
Currently, these workers can receive income support until age 68 if the injury renders them incapacitated.
Under the new threshold, Masselos said, many would be cut off after just two and a half years for income and three and a half for medical support, if they fall short of the 30% bar.
The plan has drawn criticism from Greens MLC Abigail Boyd, who called it a “terrible proposal” and pointed to a 2023 review that recommended treating psychological and physical injuries equally.
She said, “I’ve spoken to suicidal workers on a whole-person impairment of 21 per cent … The idea that a 30 per cent threshold could apply is so cruel.”
The NSW Police Association claims its members will be exempt, but Masselos’ concern remains for the broader emergency workforce.
Business NSW supports the proposed reforms, with CEO Daniel Hunter arguing that the system is unsustainable and burdens employers.
“Reforms must include a revision of the threshold for whole person impairment,” he said, noting that psychological claims result in significantly longer absences from work.
A government spokesperson defended the overhaul, saying the system is failing workers and businesses alike.
“We cannot turn a blind eye to the fact that the status quo is not returning injured workers to their health, or to work, as fast as they should expect,” the spokesperson said.
