Wednesday, 9 June 2021 Legislative Assembly- PROOF Page 1 LEGISLATIVE ASSEMBLY Wednesday, 9 June 2021 The Speaker (The Hon. Jonathan Richard O'Dea) took the chair at 09:30. The Speaker read the prayer and acknowledgement of country. Bills LAW ENFORCEMENT CONDUCT COMMISSION AMENDMENT (COMMISSIONERS) BILL 2021 First Reading Bill received from Legislative Council, introduced and read a first time. The SPEAKER: I order that the second reading of the bill be set down as an order of the day for a later hour. Announcements BIGGEST MORNING TEA The SPEAKER: I remind members, staff and everyone in the precinct that today we will be hosting the Biggest Morning Tea to raise funds for the Cancer Council and to mark the official reopening of the newly renovated and accessible Speaker's Garden. Please join us for cakes, pastries and barista coffee from 10.00 a.m. The official part will be at 10.25 a.m. Everyone is welcome. Donations will be received on behalf of the Cancer Council. They will be tax deductible and receipts will be issued. Notices PRESENTATION [During the giving of notices of motions] The SPEAKER: The member for Prospect will remain silent. I call the member for Prospect to order for the first time. Later, The SPEAKER: I call the member for Prospect to order for the second time. Bills MOTOR ACCIDENTS AND WORKERS COMPENSATION LEGISLATION AMENDMENT BILL 2021 First Reading Bill introduced on motion by Mr Victor Dominello, read a first time and printed. Second Reading Speech Mr VICTOR DOMINELLO (Ryde—Minister for Customer Service, and Minister for Digital) (09:48): I move: That this bill be now read a second time. The Government is pleased to introduce the Motor Accidents and Workers Compensation Legislation Amendment Bill 2021. The bill introduces a number of amendments to the motor accidents and workers compensation legislation, as well as the State Insurance and Care Governance Act 2015 and the Personal Injury Commission Act 2020, or the PIC Act. These amendments seek to clarify rights and entitlements, and improve the regulation, administration and efficiency of the compulsory third party insurance [CTP] and workers' compensation schemes. The amendments proposed by the bill cover four broad themes: first, improving customer experience, scheme efficiency, fairness and equity; secondly, improving access to compensation entitlements for injured workers, certain volunteers and people injured in motor vehicle accidents and their dependants; thirdly, expanding and clarifying existing regulation-making powers, including provisions related to deemed diseases and point to point Wednesday, 9 June 2021 Legislative Assembly- PROOF Page 2 vehicles; and fourthly, establishing new powers for the State Insurance Regulatory Authority [SIRA] to enable better regulation for providers of treatment and other services in the workers compensation and CTP insurance schemes. While the proposed amendments cover a diverse range of areas, they all work towards ensuring a more consistent customer experience for policyholders, injured people and other stakeholders of the workers compensation and CTP schemes. Targeted efforts to improve the clarity, efficiency and affordability of these schemes add up to make a difference to the lives of the millions of people who interact with these schemes either as policyholders or injured people. Last year these schemes collected a combined $6.6 billion in premiums and had 9.8 million policyholders with 105,715 newly reported claims. In developing the bill, my department and SIRA consulted with key stakeholders across both schemes, including insurers, peak legal and medical professional bodies, dispute resolution decision-makers, industry and key government agencies. I wish to acknowledge the assistance of these stakeholders, who have provided valuable input. Members may be assured that their comments have been carefully considered in finalising the bill. I now turn to the details of the bill. This Government is committed to maintaining affordable green slip insurance premiums. Members would be aware that a major reform has been the introduction of the Motor Accident Injuries Act 2017, which established a new CTP scheme on 1 December 2017. Since then, I am pleased to report, motorists have seen a significant reduction in green slip premiums of more than $145 on average. However, this is not a "set and forget" government. We are a government steadfastly committed to responding to customer needs and making improvements where we can. Over the past 3½ years since the CTP scheme's commencement, feedback from customers and other stakeholders of the scheme has been integral in identifying areas of the legislation where further improvement can be achieved. I can assure the House that the amendments made by the bill directly address this feedback. The bill also seeks to better align workers compensation entitlements for both paid and volunteer workers in New South Wales. The unprecedented 2019 bushfire season highlighted discrepancies in certain workers compensation entitlements that are available to paid Rural Fire Service workers but not to volunteer Rural Fire Service workers. I take this opportunity to thank the former RFS commissioner, Shane Fitzsimmons, and the current commissioner, Rob Rogers, for their advocacy in bringing these discrepancies to the Government's attention. It is important that the New South Wales Government addresses these historical anomalies to ensure that those who donate their time and expertise to protect New South Wales communities receive the same entitlement to compensation as those who are employed. There are approximately 76,319 firefighter volunteers in New South Wales, and the NSW Rural Fire Service typically receives an average of around 4,500 to 5,000 membership applications in a calendar year. In 2020 that number was almost double, with 8,494 new member applications received. The bill will provide these volunteers throughout New South Wales with the same entitlements as employed firefighters, reassuring them that their families will be protected in the event of an injury, just as they are there to protect our communities when we need them. The bill also responds to the needs of customers and stakeholders of workers compensation schemes more generally, by improving clarity and fairness in workers' access to compensation entitlements. Protecting those injured on New South Wales roads, in our workplaces or while performing volunteering activities is this Government's utmost responsibility. This means ensuring quality care and support during the injured person's treatment and recovery. To that end, the bill also provides additional powers for SIRA to provide directions to prescribed service providers in relation to claims under the workers compensation and CTP schemes. This includes requiring a service provider to provide services in a specific way to ensure the best contribution to improved outcomes for injured road users and workers. Last year the Government introduced the Personal Injury Commission Act 2020. The PIC Act was a monumental reform, delivering a modern, independent, consolidated Personal Injury Commission with separate workers compensation and CTP insurance divisions. The commission enables injured people to benefit from a simpler, more streamlined and harmonised process. The commission commenced operation on 1 March 2021 and to support its operation this bill includes minor consequential amendments to ensure that the PIC reforms operate as intended. I now turn to the provisions of the bill. The bill comprises four schedules. Schedule 1 provides for amendments concerning motor accidents legislation. Schedule 2 provides for amendments concerning workers compensation legislation. Schedule 3 contains amendments to the State Insurance and Care Governance Act 2015, relating to service providers. Schedule 4 provides for amendments that support the establishment of the Personal Injury Commission. I will now highlight some of the principal amendments in each schedule. A key feature of schedule 1, which sets out amendments to the CTP scheme, is ensuring that for people injured in motor vehicle accidents, their statutory benefit payments continue to be fairly assessed and calculated. Schedule 1 to the bill amends the definition of "pre-accident weekly earnings" in clause 4 (2) (b) of schedule 1 the Motor Accidents Injuries Act 2017 to include a consideration of any increased earnings that the injured person would have been Wednesday, 9 June 2021 Legislative Assembly- PROOF Page 3 entitled to earn had the injury not happened. This will allow CTP insurers to take into consideration any positive changes in a person's circumstances up to 12 months prior to the accident. Secondly, schedule 1 to the bill amends the calculation of weekly statutory benefits in sections 3.6 (2) and (3), 3.7 (2) and (3), and 3.8 (2) and (3) of the Motor Accidents Injuries Act 2017 to include a consideration of a person's actual post-accident earnings. Where a person returns to work after their injury and their actual earnings are greater than their earning capacity, then their actual earnings will be taken into account when determining their entitlements. This amendment is important to promote a fair and equitable assessment of a person's weekly entitlements. Thirdly, the bill clarifies entitlements for people residing outside Australia. Currently, to access benefits, an injured person living overseas must lodge an application with the Personal Injury Commission to get an earning capacity determination, even if the relevant impact on the person's earning capacity is beyond doubt. Schedule 1 to the bill amends section 3.21 (2) (a) of the Motor Accident Injuries Act 2017 to permit an insurer to start paying benefits immediately in these clear-cut cases and to agree with the injured person to make payments more frequently than on a quarterly basis as is currently prescribed. Fourthly, schedule 1 amends provisions in part 5 of the Motor Accident Injuries Act 2017 to clarify that all individuals injured in a motor vehicle accident who are not wholly or mostly at fault and who have more than one minor injury are entitled to receive statutory benefits past 26 weeks.