When I spoke with a chemical manufacturing business in Nowra recently, what I saw was worrying. They had to let go of six staff recently, despite employing 80 people and operating for 48 years. A big loss for a small firm, leaving a very human hole in the team.

The reason wasn’t a lack of customers or poor management.

Spiralling workers’ compensation premiums had doubled over the past few years, eating into their bottom line.

Add in payroll tax, insurance, superannuation and stamp duty, and the cost of doing business had become crushing. The company’s post-COVID growth plans were stalled. Without relief, this business – like many others – risked closure.

Thankfully now, that doesn’t need to happen. On the eve of Christmas, the Minns Government and new Opposition Leader Kellie Sloane struck a practical, commonsense deal late last week to reform NSW’s long-troubled workers’ compensation system.

The deal freezes average premiums for 18 months, introduces premium caps, raises the Whole Person Impairment threshold to 25 per cent from July 2026, strengthens return-to-work programs, and clarifies protections for employers managing staff. For businesses like the one in Nowra, it’s the difference between survival and closure.

Best of all, it proves our politicians can work together when they put principle ahead of point-scoring.

Ms Sloane and new Nationals Leader Gurmesh Singh deserve credit for breaking the parliamentary stalemate and negotiating in good faith.

The Premier and Treasurer Daniel Mookhey should also be recognised for their persistence in seeing these reforms through, even when the politics got hard.

This deal is practical, sensible and timely. Business needs certainty, particularly around workers’ compensation premiums, which under a “do-nothing” scenario were set to rise 36 per cent over three years.

Our surveys show that one in five businesses could have been forced to close. Instead, this agreement safeguards jobs and protects local communities. It also gives businesses the breathing space they need to invest in staff, equipment and innovation.

Crucially, these reforms protect injured workers. Raising the Whole Person Impairment threshold ensures that those with serious injuries receive the support they need, while encouraging early intervention and rehabilitation for others. It’s about sustainability: protecting the most vulnerable while preserving business viability.

The stage has also been set for a successor program to Business Connect, which helped thousands of SMEs across NSW before it was axed. The new program must come back bigger and better in order to nurture the next generation of ‘mum and dad’ entrepreneurs, ensuring NSW remains the best place in Australia – and the world – to start and grow a business.

But we can’t stop here. The cost of doing business in NSW remains a pressing concern.
And make no mistake: our organisation will ensure the cost of doing businesses is a central part of our 2027 state election campaign.

Beyond workers’ compensation, companies still face high utilities, soaring rents, limited employment lands and chronic skills shortages.

Small business owners consistently tell us they lack adequate support and resources to implement AI and other productivity-enhancing technologies.

I have no doubt these challenges will dominate the conversation leading into March 2027. More than 800,000 businesses across the state seek policies that honour their aspirations and sacrifice.

The Nowra business symbolises many in NSW. These are not faceless corporations; they are the backbone of our economy, enterprises that families often invest their entire lives in. They want to continue operating, growing and providing local jobs.

I’m optimistic about the business and political climate next year. NSW has seen its fair share of stalemates, but this deal shows what’s possible when leaders act with vision and pragmatism. It’s not perfect, and it still needs to be legislated in February, but it is a strong outcome and it comes at the right time.

This festive season, businesses can look under the tree and find a neatly wrapped present that protects workers and safeguards jobs, while supporting their own future viability.

A brighter Christmas than many were led to expect, after a year of sleepless, silent nights.

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