The New South Wales Government will wind up the Dust Diseases Board, which decides asbestos victims' compensation claims.

The decision to cut the board was made as part of a restructure to Workers Compensation in NSW.

NSW Finance Minister Dominic Perrotet today announced an extra $1 billion for workers compensation which will increase minimum weekly payments for many injured workers and set aside more money for people who need artificial limbs or hearing aids.

The announcement reverses some of the cuts former premier Barry O'Farrell made in 2011.

Mr Perrotet said the decision to cut the board was part of a restructure, and the Insurance and Care Board would replace it.

The State Government said it would not result in benefits to victims compensation being cut, and would reduce claim times and provide better outcomes.

But Tim Ayres from the Australian Manufacturing Workers Union describing it as a cynical cost-cutting move.

He said the board was an important body that had decided claims independently for many years.

"It deals with those claims sensitively. It deals with them carefully. It provides A-grade top quality support to those families, and to abolish it is senseless bureaucratic violence," he said.

"I don't understand why the Government would set about doing this."

Mr Perrotet said members of the board could apply for new jobs on an advisory committee.