The O'Farrell government will take an axe to workers compensation, slashing lump-sum payments for the injured and removing long-term recipients of weekly benefits from the scheme after a set period.
Workplace lawyers said the changes, if delivered, would transform NSW into ''the meanest system in the country''.
The government has flagged its intention to overhaul the $13 billion WorkCover system, which faces a deficit of up to $5 billion. An announcement is expected as early as Tuesday.
Barrister Bruce McManamey, a spokesman for the Australian Lawyers Alliance, said: ''It's the kind of stuff that will result in injured workers losing their homes.''
The changes, according to sources, would include:
ABOLISHING lump-sum payments for injured workers with ''less than 10 per cent whole-body impairment'' (and therefore excluding payment for injuries such as a fused ankle or back and neck injuries not requiring surgery).
A CUT-OFF after 2½ years (or 130 weeks) for weekly payments for those considered to be partially injured.
A LIMIT of nine years for all entitlements except for people who are ''totally incapacitated''.
Mr McManamey said NSW currently had one of the better schemes, but ''if they go through with these changes, NSW will have the meanest system in the country.
''It's the kind of stuff that will result in injured workers losing their homes. People lose the ability to repay mortgages when they are thrown back on to social security.''
He said the majority of lump-sum payments were between $6000 and $13,000. ''If they abolish lump sums for injuries less than 10 per cent, I think it falls into the category of mean and petty,'' Mr McManamey said.
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