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flag NSW's icare faces $5.4B deficit; reforms to limit mental health claims stall amid worker protection debates.

flag Australia’s largest workers’ compensation scheme, icare in New South Wales, is facing a worsening financial crisis with a projected $5.4 billion deficit and daily losses exceeding $6 million. flag The scheme, covering over 3.6 million workers, is expanding to include protections against workplace bullying and sexual harassment, allowing over 400,000 workers to seek legal remedies. flag The government is pushing reforms, including raising the threshold for psychological injury claims, to stabilize the system—supported by business groups but criticized by unions and legal experts who warn it could block most mental health claims. flag With only four sitting weeks left in the 2025 parliamentary session, efforts to pass reforms remain stalled due to lack of crossbench support, amid growing pressure to balance financial sustainability with worker protections.

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