Running a small business is hard enough, without being hit by new costs that you can't avoid.

Unfortunately, small businesses and community sector organisations are facing workers compensation premium hikes that will force many to close their doors.

Since 2018, the number of psychological claims has doubled.

And the cost of those claims has also doubled - from $150,000 to about $300,000.

If we don't make any changes, small businesses will cop an extra 36 per cent in premiums over the next three years - on top of the previous rises - even with no claims against them.

This is why my government has introduced a new workers compensation bill to progress urgently needed reform.

As it currently stands, the system isn't sustainable.

Under the status quo, just 50 per cent of workers with psychological claims are back at work within a year. For physical injuries, the rate is 95 per cent.

That's why we're reforming the system to focus on early identification and appropriate treatment for injury and illness, supporting recovery.

This reforms are difficult, but necessary.

Unfortunately, they are being held up by the Liberals and the Greens in our upper house, who refuse to get on board.

This lack of certainty is compounding the pressure felt by businesses and community groups in NSW.

If the Liberals change their minds and accept our changes, I will happily share the credit. This isn't about politics.

It's about building a sustainable system, that prevents injury in the first place, and then encourages retraining and an effective return to work.

This is coupled with major reforms to SafeWork NSW, investing in more inspectors to focus on harm prevention and industrial relations reforms that establish a 'stop bullying' mandate.

These reforms are also supported by many business groups and community providers within NSW.

Those standing in the way of these reforms are short-changing those organisations and the people who work for them.

These reforms strike the right balance, ensuring those with the greatest need continue to receive support, and those who can return to work are assisted to do so.