One in five businsses could shut without workers’ comp reform
June 2025
Read MoreTwenty member groups, grassroots community organisations and industry bodies have banded together to call on state politicians to back the NSW Government’s workers’ compensation bill.
Record business insolvencies and a projected 36 per cent increase in workers’ compensation premiums has prompted Business NSW, Surf Life Saving NSW, Restaurant and Catering Industry Association, Clubs NSW, Australian Hotels Association NSW and others to call for change.
The alliance – representing hundreds of thousands of businesses – has ramped up pressure on NSW Parliament to pass the Workers’ Compensation Legislation Amendment Bill 2025 (the amendment bill).
Business NSW CEO Daniel Hunter said: “The NSW Parliament should be supporting small businesses, not leaving them to struggle. Without action, both workers and businesses will pay the price.
“Soaring premiums are threatening jobs, investment, and the survival of thousands of small and medium businesses. Businesses need this bill to pass.
“The PCYC, which is part of our alliance, said last week that young people could miss out on life-changing youth programs if premiums continue to rise exponentially."
Mr Hunter noted that the Minns Government’s reforms are not retrospective, meaning no one receiving benefits will lose them.
He warned that if the reforms aren’t passed, 320,000 small and medium NSW businesses could face a devastating premium increase of at least 12 per cent in the coming months (and 36 per cent over three years).
“One in five of our members say they’ll be forced to close if premiums continue to rise. Nearly half say they’ll have to cut staff. That’s not just bad for business – it’s bad for jobs, communities and the broader economy.”
The push for reform isn’t coming from one sector alone – employer groups across industries are sounding the alarm.
Community & sporting organisations
Surf Life Saving NSW
PCYC NSW
Hospitality & nightlife
ClubsNSW
Australian Hotels Association (AHA NSW)
Australian Restaurant & Café Association (ARCA)
Restaurant & Catering Industry Association (RCA)
Nighttime Industries Association
Leagues Clubs Australia
Business & commerce
Business NSW
Business Western Sydney
Business Sydney
Franchise Council of Australia
Australian Retailers Association (ARA)
National Retail Association (NRA)
Construction & infrastructure
Housing Industry Association NSW (HIA NSW)
Civil Contractors Federation NSW (CCF NSW)
Mining & transport
NSW Minerals Council
NSW Taxi Council
Motor Traders Association
About Business NSW
Formerly the NSW Business Chamber, Business NSW is the peak policy and advocacy body which has been representing businesses in NSW since 1826. We represent almost 50,000 businesses.
MEDIA CONTACT: BEN PIKE – 0429 993 822