Labor’s plan fails after independent MP Taylor Martin withdraws support

Earlier on Thursday, Greenwich had stood at a press conference alongside independent MP Joe McGirr, business leaders and disability businesses, declaring he was confident his circuit-breaker had the numbers to pass through the upper house.

But after Martin walked away, Legislative Council deputy president Rod Roberts declared the compromise amendments could not be voted on, leaving only the government’s original proposal for a vote.

The government’s reforms focused on doubling the scheme’s minimum Whole of Person Impairment level, a measurement of how much an injury has permanently reduced a person’s function, to 31 per cent.

The outcome is a bitter blow for the government. Mookhey had spent months arguing the proposed reforms were necessary to ensure the scheme’s financial sustainability and limit proposed premium hikes for businesses.

Debate over the legislation strayed into the early hours of Friday morning, but saw a number of amendments proposed by the Coalition, independent MP Mark Latham and the Greens knocked back.

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Greenwich said he was “deeply disappointed” that the compromise deal had fallen apart at the last minute.

“That is Mr Martin’s prerogative,” he said.

“The reality now is that unless the coalition changes their position, non-profits will have to decide what services to cut ahead of Christmas, and Business NSW tells us one in five small businesses will close.

“This is serious, and parliament shouldn’t rise for the year until we resolve this stalemate. If we don’t do our job, people across NSW will start losing their jobs”