The bill, which was tabled by the New South Wales government in parliament this week, proposes to reduce weekly benefits after 13 weeks, replacing the current system of a 100% payout for 26 weeks.

A one-year cap for the payment of medical benefits, with an exemption for the seriously injured also forms part of the bill.

The call for action comes from industries who claim that the current WorkCover scheme is stifling business in NSW.

Australian Industry Group NSW director Mark Goodsell said yesterday the state WorkCover scheme was a burden on business, pointing to high workers compensation premiums, despite a decline in injuries.

"NSW workplace injuries are trending down, but workers compensation premiums are not,” he said.

“NSW employers are tired of bearing the costs of a scheme that are increasing because it is taking longer to return workers to fitness than it did five years ago.

“There is a clear-cut case for this reform.”

Goodsell said given the higher Workcover premiums in NSW, investment is being lost to other states as a result of the current scheme.

“The bill is a vital and long overdue step towards bringing NSW in line with competitor states,” he said.

“One of the greatest worries of business operators is a costly WorkCover claim that falls victim to the scheme’s flaws and its inability to deliver a return to work as soon as possible.”

"For too long, NSW businesses have been disadvantaged by substantially higher WorkCover premiums than other states - this has seen jobs and investment driven out of NSW.”

Goodsell warned that without reform, WorkCover premiums will rise 28% on average.

"We urge all parties to support this important reform which will help improve competitiveness and support jobs growth for NSW.”

"Contrary to union claims, insurers do not earn underwriting profit from workers compensation in NSW, and are not set to profit from reform - it is a government-run scheme and the state’s employers bear the costs.”