NSW Economy to Loose over One Hundred Million with the Five Year Workers Comp Stat Cut off.

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:

  1. 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)
  2. That's 6,000 x $31,200 a year equalling $187,200,000.00 a year in payments.
  3. 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.
  4. 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.
  5. The difference between those two figures?

$103,646,400

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. ​

  • Philip Rosser

    I have been on work cover payments for 13 years , I have had 3 back operations, 1 was to have a spinal cord stimulator put in. I take 14 tablets a day for pain and wear Fentanyl patches, I was left with permanent nerve damage from the waist down. My insurance company sent me to see a neurosurgeon a couple of weeks ago, when I walked in he said ” you have 2 arms and 2 legs you should be able to get a job”. I said to him i can’t stand for to long, sit for to long or walk a large distance and with all my above problems no one would employ me. He said it’s not their problem and i should take it up with Centre link. Because my wife works i will receive nothing and have to pay for my own medication, so after suffering terribly for all these years they now tell me i have to pay for having being injured. Why are people not going mad about this, where are the unions when people need them
    A man in my town has already tried to kill himself over what’s going on in N.S.W. Do we just sit back and let greedy bloody governments do this to injured workers. To attack the old and the sick or injured is as un Australian as it gets , SHAME on the N.S.W government.

  • Lenny Burger

    So you are saying that all insurers have to do is drag their feet for five years and then they can get rid of you!!! What??? Even if you haven’t healed, or haven’t finished with your treatment regime, they can just send you to Centerlink and you can’t do a thing about it!! This is an absolute disgrace, that insurance company profits come before treatment and compensation for injured workers. It is bad enough that public health care is being allocated to people based on their level of private health insurance, but worker’s have the insurance cover and still can’t get looked after. I myself have been off work for over two years and just had my back surgery last week, paid for out of my superannuation. Do you know why I had to pay myself? The worker’s comp laws do not give me any right to demand the insurer pays for my treatment. I kid you not. I can not force them to pay for my surgery, even though their own neurosurgeon said it was necessary. WHAT IS THE POINT OF WORKER’S COMPENSATION INSURANCE WHEN IT DOES NOT COVER COST OF TREATMENT FOR INJURED WORKERS???? There is no more protection, it is just a money making business that feeds off the most vulnerable victims, like vultures over a corpse. The system needs to be fixed and I am going to do my best to make it happen. I mean, I have nothing left to lose anyway. I won’t ever work in my chosen profession again and will probably never get another well paid job, if any job, after starting from scratch post four years of being in the worker’s comp system.

  • Sheree Johnston

    Yup I am one of these people had my evaluation and won’t get 20%

    • Lenny Burger

      Yeah, I bet you will lose more than 20% of your income for the rest of your life but no compensation for that eh? Totally backwards system ruined by the government. 🙁