Workers suffering psychological injuries in New South Wales will have their compensation entitlements slashed under a controversial deal between Labor and the Coalition.

The major parties announced on Thursday that they would pass legislation early in 2026 that would freeze premiums for 18 months, saving businesses and charities from a projected 36% increase over the next three years.

The new opposition leader, Kellie Sloane, ended a months-long stalemate by reaching a compromise with the NSW treasurer, Daniel Mookhey, that would increase the “permanent impairment” threshold from the current 15% to 25%. NSW government accused of breaking election promise as it confirms two-way tolling on Sydney Harbour Bridge Read more

That means people who suffer psychological injuries at work th

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