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Guild Insurance
Guild Early Learning
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Need for appropriate Workers Compensation Reform

June 13th, 2025 Latest News

Over the last few years, NSW's early childhood education and care services would have noticed their workers compensation premiums increasing by at the very least 8% per year, if not more.


And without reforms, workers compensation premiums are projected to increase by a minimum of 36% in 3 years’ time (or at least 12% per year). It is also worth noting that such increases are the projected average for all policy holders, hence for those policy holders with non-physical claims, premiums are likely to increase in excess of 36%.


Moreover, it is ACA NSW's understanding that NSW's workers compensation scheme:


  • is already $3.6b in the red;

  • is losing $5m per calendar day; and

  • is experiencing a 65% surge in psychological claims.

Thus raising the obvious question: Is it financially capable to support all injured workers?


It is worth noting that even the NSW Council of Social Service (NCOSS) has raised concerns that their social work services have already been charged 24% to over 60% in FY2023/2024. And hence the NCOSS has expressed support for workers compensation reforms.

Along with ACA NSW, the Australian Hotels Association NSW (AHA NSW), ClubsNSW, Restaurant and Catering Australia (R&CA) and the Pharmacy Guild NSW have joined to express their concerns and to stress that urgent reform is needed.


The goal of the NSW Government's reforms is to create a fairer system that is more sustainable, removing structural flaws while supporting those with genuine psychological injuries.


ACA NSW President, Lyn Connolly, recognised that while there is a strong commitment from employers to support injured workers and help them return to work, there is also a pressing need to address the rising cost of workers compensation premiums to ensure the system remains affordable, effective and sustainable for both workers and employers.

ACA NSW continues to engage with the NSW Government, the NSW Opposition as well as the crossbench on workers compensation, housing for essential workers, planning, health and primarily early childhood education and care.


For any further information, please contact the ACA NSW team via 1300 556 330 or nsw@childcarealliance.org.au.


PUBLISHED: 13 JUNE 2025

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