SafeWork NSW will be transformed into a standalone regulator following a 12-month inquiry, the state government has declared
The report by former judge Robert McDougall identified numerous examples that demonstrated "SafeWork has fallen down in the performance of its functions".
Insiders were particularly concerned about SafeWork's triage ineffective system, and its slant towards dealing with serious or dangerous incidents with administrative responses, such as letters.
"I fear there will be a death caused by this type of triaging," one SafeWork inspector said.
The NSW government endorsed the report's recommendations, with further work underway to determine specific implementation details.
Industrial Relations Minister Sophie Cotsis said worker safety was not red tape or a "tick a box function", it was a fundamental right for every worker to go to their job and come home safely.
"This government commits to all NSW workers that it will never allow the health and safety regulator to be compromised so badly again," Ms Cotsis said.
SafeWork NSW acting deputy secretary Trent Curtin said the organisation was entering a new era.
"Our dedicated and passionate staff want to make sure that everyone that goes to work can come home safely."
"With work already underway, SafeWork NSW will take all steps necessary to analyse our regulatory approaches and support systems to ensure best practices."
The McDougall report also found issues with SafeWork's database and responsiveness to complaints.
"An inspector reported that contact centre staff will tell a worker who is ringing to make a [request for service] that before the matter can be accepted, they must go away and try to resolve issues in the workplace before SafeWork would take their complaint," the report stated.
"Entirely inappropriate and indeed may place vulnerable people at significant risk."
Some of the recommended reforms are already under way, including reviewing SafeWork's capabilities in triaging of incidents, improving the responsiveness of contact centre staff and pulling together SafeWork staff previously spread across the Department of Customer Service.