What is ‘claim farming’ and why is this state cracking down on it?

NSW will introduce new laws to prevent “claim farming” that pressures individuals into lodging false compensation claims, particularly related to issues like sex abuse. This crackdown follows the arrest of seven alleged “claim farmers” accused of promoting millions of dollars in false claims earlier this year. The laws will prohibit soliciting others to make claims, ban the buying or selling of claim referrals, and require lawyers convicted of farming claims to refund legal costs, while still allowing abuse victims to bring legitimate claims directly to lawyers.

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