[Greens-Media] Media Release: Creating an underclass of gig workers

[David Shoebridge]

Media Release: Creating an underclass of gig workers


5 March 2021


The leaked NSW Cabinet proposal to create a cut-rate workers compensation scheme for gig economy workers threatens to create a permanent underclass of workers at very high risk for injury and death.


The government proposes three different options for benefits, each of which provide a level of benefits that falls well below the rates payable to all other workers under the existing Workers Compensation system.


Greens MP and Workers Rights spokesperson David Shoebridge said:

"Each of these three options propose a system where gig workers are cheaper to employ, cheaper to injure and cheaper to kill than regular employees. That must not be the model we adopt in NSW.

 "The Minister needs to commit to including in the discussion paper a fully costed option that will see gig workers have the same rights when injured as every other worker in NSW.

 "If the business model for the food delivery industry requires the systematic exploitation of a vulnerable workforce, then the business model needs to change.

"If this means gig business and consumers have to pay slightly more for the convenience of having food delivered then that's what needs to happen.

"Food delivery work is dangerous, riders are dying and being injured on our roads far too frequently, this means they are even more in need of a fair compensation scheme, not less.

"These proposed changes would officially create two classes of workers and end up driving more employers to move to the cheaper "more flexible" gig economy arrangements.

"If any of these cut-price-compo options are adopted we will end up seeing even more workers being pushed into the gig economy with less pay and less protections," Mr Shoebridge said.

Media contact: 9230 3030


Details of the 3 proposed options and the existing Workers Compensation benefits follow.






Three options in leaked cabinet paper



Option 1


Option 2


Option 3


Deaths benefits


*       $250K

*       Reasonable funeral expenses up to $15K

*       Reasonable costs of body transportation


*       $500K

*       Reasonable funeral expenses up to $15K

*       Reasonable costs of body transportation


*       $834k (equal to WC)

*       Reasonable funeral expenses up to $15k

*       Reasonable costs of body transportation


Income support


*       $850 per week for up to 13 weeks


*       $850 per week for up to 26 weeks


*       $850 per week for up to 52 weeks


Medical Expenses


*       Up to $50K within 26 weeks of date of injury

*       Significant injury up to $100K within 52 weeks of date of injury

*       Catastrophic injury- up to $200k within three years of date of injury


*       Up to $75k within 26 weeks of date of injury

*       Significant injury- up to $150k within 52 weeks of date of injury

*       Catastrophic injury- up to $300k within three years of date of injury


*       Up to 100k within 26 weeks of date of injury

*       Significant injury- up to 200k within 52 weeks of date of injury

*       Catastrophic injury- up to 400k within three years of date of injury


Lump sum compensation


*       Significant injury- 10 percent of death benefit amount

*       Catastrophic injury- 30 percent of death benefit amount


*       Significant injury- 15 percent of death benefit amount

*       Catastrophic injury- 40 percent of death benefit amount


*       Significant injury- 20 percent of death benefit amount

*       Catastrophic injury- 50 percent of death benefit amount


















Existing workers compensation benefits for all other injured workers



Workers Compensation


Death Benefits


*       $834 200

*       Reasonable funeral expenses up to $15K

*       Reasonable costs of body transportation

*       weekly payments ($149.30 per week as of 1 October 2020) for each dependent child up to the age of 16 (or 21 if they are in full-time education


Income Support


*       Up to 95% of pre-injury average weekly earnings (PIAWE) for up to 13 weeks from date of injury

*       Up to 80% of PIAWE from 14 to 260 weeks

*       Maximum weekly payment of $2224 for 5 years

*       If seriously injured payments continue until retirement age


Medical Expenses


*       10% or less permanent impairment- 2 years

*       11%-20%  permanent impairment- 5 years

*       > 20% permanent impairment- for life


Lump sum compensations


*       Injuries from 1 July 2017 - Maximum amount $610,930 + 5% for injuries to back after 1 January 2006.


* Figures available here<https://www.sira.nsw.gov.au/__data/assets/pdf_file/0006/530862/Workers-compensation-benefits-guide.pdf>



Kym Chapple
Senior Advisor
Policy | Communications | Legislation
02 9230 3030
Office of Greens MP David Shoebridge

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