New measures aim to protect vulnerable individuals from exploitation
The New South Wales (NSW) government has announced a crackdown on the controversial practice of "claim farming," in which vulnerable individuals are pressured into lodging compensation claims.
The state government is introducing the Claim Farming Practices Prohibition Bill 2025, aimed at preventing the exploitation of claimants, including survivors of child abuse, through unethical and high-pressure solicitation tactics.
Under the proposed legislation, the bill will:
Claim farmers frequently obtain personal information without consent, using aggressive methods such as harassment and intimidation to pressure individuals into making claims. According to the NSW government, these practices often cause significant distress to victim-survivors and may involve misleading claims about legal entitlements.
The bill will apply to personal injury claims covered under the Civil Liability Act 2002, including those related to serious injury, medical negligence, and public or product liability. It will also cover intentional torts, which involve deliberate acts leading to harm, such as child abuse, assault, and deprivation of liberty.
Existing laws against fraud will continue to apply in addition to the new bill. Dishonestly obtaining financial advantage by deception carries a maximum penalty of 10 years' imprisonment in NSW.
In a statement, Attorney General Michael Daley condemned claim farming, stating that it is unacceptable for individuals and organisations to profit from the suffering of vulnerable people.
"It's abhorrent that individuals and organisations are seeking to profit off vulnerable people such as victim-survivors of child sexual abuse," Daley said. "The NSW government is listening to advocates who have called for a ban on this predatory and exploitative practice that worsens the trauma experienced by victim-survivors. We have carefully consulted with the community and are moving to stop the harm inflicted by this egregious behaviour."
The government assured the public that banning claim farming will not prevent abuse survivors from seeking rightful compensation. Individuals wishing to pursue claims are encouraged to contact a lawyer directly.
