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Premier’s Office Forced to Quell Backbench Rebellion on Workers’ Compensation

  • On May 26, about eight Labor MPs met in parliament to discuss concerns about workers' compensation reforms before the bill was introduced.
  • This followed internal disagreement despite the caucus unanimously adopting the bill, as some backbenchers felt their concerns were not addressed by Treasurer Mookhey.
  • Mookhey cautioned that the Coalition’s amendment to lower the WPI threshold would impose an extra $1.9 billion burden on the workers’ compensation scheme.
  • Approximately 13 mostly soft-left faction MPs prepared a letter opposing aspects of the reforms, but premier's office advisers discouraged signatures, while unions and business groups expressed strong reactions.
  • The dispute suggests ongoing challenges in passing the reforms, with the Greens undecided, opposition parties critical, and reform delay increasing financial burdens on injured workers and businesses.
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Australian Financial Review broke the news in Sydney, Australia on Tuesday, June 3, 2025.
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