Five NSW businesses have been prosecuted for failing to hold mandatory workers compensation insurance, the State Insurance Regulatory Authority (SIRA) confirmed in a media release dated October 6, 2026. The announcement also reported 16 successful fraud convictions secured by the regulator since January 2025.
The non-insurance prosecutions carry the most direct implications for brokers advising employer clients.
A SIRA review published in July 2025 found a 75% non-compliance rate among audited employers, recovering $24.5 million in additional premiums. That figure reflects a coverage gap sitting squarely in a broker’s line of sight – and one regulators are now actively pursuing.
Where an employer has no valid policy and a worker is injured, the claim falls to icare’s Nominal Insurer under the Uninsured Liability Indemnity Scheme. The employer faces legal exposure and potential prosecution under section 155 of the Workers Compensation Act 1987 (NSW). The worker faces additional investigation by icare before liability is accepted – a more involved process than a standard insured claim.
Reforms under the Workers Compensation Legislation Amendment Act 2025 and the Workers Compensation Legislation Amendment (Reform and Modernisation) Act 2026 commenced on July 1, 2026, per SIRA. Employers without a valid policy now face financial penalties that go beyond repayment of avoided premiums, including fines and potential prosecution for deliberate non-compliance.
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The most significant prosecution involved Haneen Asfour, sentenced to 18 months’ imprisonment with a non-parole period of 10 months at Downing Centre Local Court in September 2026. She admitted receiving nearly $350,000 in CTP benefits she was not entitled to.
SIRA’s investigation found Asfour produced 460 false documents across 17 months – fabricated receipts, invoices, medical reports, emails, and a bank statement – all purporting to evidence services never delivered. She impersonated medical practitioners, created false email accounts in their names, and generated fabricated treatment plans to sustain the deception. Presiding Judge L. Swan found the offence serious, noting its extent, duration, and the scale of the fraud. An aggravating factor was that Asfour was subject to a good behaviour bond during part of the offending period.
Two workers compensation fraud matters concluded in the same period. Reece Gregory received an 18-month Community Correctional Order, a $2,000 fine, and was ordered to pay $8,909 in restitution to the Workers Compensation Insurance Fund after submitting three fraudulent medical certificates falsely claiming no work capacity – with $2,500 in professional costs also ordered.
Maria Wrage pleaded guilty to dishonestly obtaining nearly $3,000 in weekly payments, receiving a 16-month conditional release order and ordered to pay $5,786 in compensation to the Fund plus $3,000 in professional costs.
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These prosecutions are unfolding against a scheme in genuine financial difficulty. In a submission to the NSW Legislative Council in May 2025, the National Insurance Brokers Association (NIBA) reported the scheme deficit had reached $3.6 billion, growing by approximately $1.8 billion in the preceding financial year. Average premiums rose 8% year-on-year over the two prior years, with a further 8% increase confirmed for 2025-26.
NIBA CEO Richard Klipin, appearing before the NSW Legislative Council’s Public Accountability and Works Committee during the inquiry into the Workers Compensation Legislation Amendment Bill 2025, said: “We share the Committee’s commitment to a sustainable, fair, and effective workers’ compensation system.”
Fraud and avoided premiums both widen a deficit that flows directly into employer costs – costs brokers are routinely asked to help manage.
SIRA chief executive Samantha Taylor said: “Fraud is a criminal offence that undermines scheme integrity, fairness, and public confidence. As SIRA continues to strengthen its response to fraud, those who seek to exploit NSW insurance schemes can expect greater scrutiny and a stronger regulatory response.”
