Rising workers compensation costs endanger NFP workers who are risking their health to support others

However, organisations like ours, delivering essential services in communities across NSW, are experiencing exorbitant increases in workers’ compensation insurance premiums.

The for-purpose sector supports a workers’ compensation scheme where employees injured on the job have a fair, reliable and quality safety net to aid their recovery and return to work. Equally important is the need for a sustainable sector supported by a scheme that has evolved to deal appropriately with mental health injuries. But what we currently have is a system that falls short – for both employees and employers.

We’ve seen this coming and have been warning about what’s at stake. This issue has been growing over the past few years, and unless a solution is found urgently, it threatens the very sustainability of our community services. To date, large community service organisations like Mission Australia and St Vincent de Paul Society NSW have been able to absorb the growing insurance burden, but we’re reaching the limits of our resources. Many smaller community service organisations, including many members of the New South Wales Council of Social Service (NCOSS), now face an existential problem.

Charities are at the frontline of rising demand. Every day, our sector provides many thousands of services to people experiencing homelessness, disadvantage, domestic and family violence, mental ill health, gambling harm, housing insecurity, unemployment, disability and many other challenges.

The workers delivering these services are the backbone of our sector and the connectors, carers, mentors, protectors and guardians of communities. Their wellbeing is essential, and the system should provide appropriate protections to make sure they’re safeguarded and properly supported when workplace injury occurs.

Every dollar not-for-profit organisations are paying in additional insurance premiums is a dollar less we have to spend on the services our communities rely on.

It’s becoming increasingly apparent it isn’t just our sector feeling the pinch, with recent media reports suggesting governments across Australia face huge increases in insurance premiums that have not been budgeted for.

The system is broken. The NSW Parliament must prioritise solving this issue before we start to lose the community services and programs that are the lifeline for so many people experiencing disadvantage across the state. The Parliament’s inquiry into the Minns Government’s workers’ compensation amendment legislation sought submissions in July, but we’re yet to see any report or response from the Parliamentary Committee.

We’re not asking to be exempt from responsibility. Charities take the safety of staff and volunteers seriously and we support the principles behind workers’ compensation. But the system needs to recognise not-for-profits operate differently, and that our social impact should be factored into how premiums are set.

Our sector is ready to partner with the NSW government on finding the solutions. We’ll do our part by continuing to invest in our people and their wellbeing.

Our meetings with the NSW Treasurer Daniel Mookhey and Shadow Treasurer Damien Tudehope in October were opportunities to raise these concerns directly and extend our offer to work collaboratively with them, across the Parliament, to find a workable solution that achieves the twin goals of worker protection and financial sustainability. A solution must be found.