ACC levies may be cut
The Accident Compensation Corporation is considering lowering the average ACC levies paid by employers and employees, but will first open up the proposal for public consultation.
ACC pays for personal injuries by setting separate levies paid by employers, self-employed people, employees and motor vehicle users.
The levy meets the costs of work-related personal injuries, non-work related personal injuries, and personal injuries involving moving motor vehicles on public roads.
ACC has suggested a 13 per cent decrease in the average work levy, paid by employers and self-employed, and a 12 per cent decrease in the earners' levy, paid by everyone in the paid workforce.
There would be no change to the average motor vehicle levy, paid by motor vehicle owners and users, under the proposal.
The average work levy is different for each occupation and can be calculated by visiting the ACC website. The combined "earners' levy" is proposed to reduce by 12 per cent, from $1.48 to $1.30, or $1.50 including GST, per $100 of liable earnings.
The average composite Motor Vehicle levy for 2013/14, across passenger vehicles, motorcycles and goods & services vehicles, is set to remain at $334.52. The petrol levy will remain at 9.9 cents per litre.
"ACC believes that there are opportunities to reduce the levies in the work and earners accounts and to hold them at current levels in the motor vehicle account," said ACC chairwoman Paula Rebstock.
"But we are keen for levy payers to satisfy themselves on the information available and to let us know if they have alternative views."
ACC said it set the levy rates based on projected claim costs, returns from ACC's investments, projected earnings on which levies are assessed, government funding policy, and the number of registered motor vehicles and the amount of petrol consumed.
In her introduction to the consultation documents Rebstock said it had been "a challenging year" for ACC.
"The organisation has experienced changes in relation to leadership, a shift in the policies and processes around privacy and the security of information, and our organisational culture has been under the spotlight," she said.
The consultation period will run for four weeks until October 23 after which ACC's recommendation will be made to the Minister for ACC, Judith Collins, for a final decision.
- © Fairfax NZ News
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