One Hundred Million Dollars stripped from our suburban economies each year.
That's what the five year cut off means to all of us.
According to iCare around 6,000 people will lose their Workers Compensation weekly payments this financial year. That's a drop in income of $20,000 for each of those families.
These are the vulnerable families that will suffer the most. What is not being talked about is the slug to the NSW economy of the Liberal governments move.
That slug to our NSW economy is $103,646,400.
Here's how we got those figures:
- Six Thousand people receiving an average of $600 per week through workers compensation (some will receive more, some less so we rounded it to the figure used by iCare)
- That's 6,000 x $31,200 a year equalling $187,200,000.00 a year in payments.
- Given the whole person impairment percentage is less than 20% this would preclude the vast majority (barring those who may have been wrongly assessed by NSW WC) from receiving Disability benefits.
- The New Start Allowance is Currently $535.60 a fortnight or $267.80 a week. or $13,925 a year over the 6,000 people affected that equates to $83,553,600 over a year that the Federal Government (i.e the tax payer, not the insurer) will be forking out.
- The difference between those two figures?
What about Family and Parenting Benefits have we included them in our calculation?
The majority of people receiving workers compensation benefits who will be affected are already receiving family and parenting benefits if they have a family. Some will move down a category and receive more in these payments, but these would account for a fraction of the total figure lost to the NSW Economy. We have included them by rounding down the figure in the headline to One Hundred Million Dollars a year.
But isn't this a saving for the government?
No. The cost is compensation for an injury sustained in a workplace which is so severe that the injured worker has not been able to return to stable (or any) employment.
It is born through the established insurance system that the Liberal government likes to remind us is in healthy surplus even with the weekly costs of the 6,000 injured workers being cut off.
This cost is going to be born by our local communities and businesses. mortgage foreclosures, significantly less spending in the supermarkets and other local stores. it is a direct reduction in our Economic state, all this and the economists are saying there is a recession in our retailing sector at the moment.
The families cant bear a loss of $20,000 a year, The NSW economy cant bear a loss of $100,000,000 a year.