ACC worker levy cuts expected

HAMISH RUTHERFORD
Last updated 12:04 25/11/2013

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Workers may fork out less for ACC next year.

The corporation today revealed its proposals for cuts to employer and earner levies for the 2014/15 financial year alongside reductions for vehicle registration.

In most cases, ACC is proposing cuts, made possible by its financial position.

Workers now pay $1.70 for every $100 earned.

While ACC has not provided examples on the practical effect of the changes, it would appear to give another 25 cents for every $100 earned, or $127.50 for those earning $50,000 a year.

Work levies - paid by employers on behalf of workers - are proposed to fall by 17 per cent.

ACC chairwoman Paula Rebstock said the recommended levy cuts had been made possible by ACC's improved financial situation, with the scheme on-track to having sufficient assets to meet its liabilities by 2019.

"We're not quite there yet. Although we achieved a surplus last year, the scheme's liabilities still exceed its assets by $2.3 billion. But we're confident our recommended levy cuts are sustainable."

The final decision on levies rests with the Government.

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- © Fairfax NZ News

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