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NSW's icare faces $5.4B deficit; reforms to limit mental health claims stall amid worker protection debates.
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.
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.
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.
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.
El icare de Nueva Gales del Sur enfrenta un déficit de 5.400 millones de dólares; las reformas para limitar las reclamaciones de salud mental se estancan en medio de los debates sobre la protección de los trabajadores.