Motor vehicles miss out in $387m of ACC cuts
The Government has announced cuts of $387 million to ACC levies but motor vehicle owners will have to wait more than a year for relief.
ACC Minister Judith Collins announced the cuts today, but said the Government could not act immediately on cuts to motor vehicle levies recommended by ACC because that account was not yet fully funded.
Cuts to motor vehicle levies, which include car licensing and petrol prices, would take effect from July 1, 2015. The other cuts would take effect next year.
Other cuts recommended to the workers and employers levies would be implemented, however.
"The average New Zealand household can expect to keep just over $200 each year. Small businesses will also be around $180 better off annually and larger employers will receive on average a $6000 reduction."
Collins said the cuts largely reflected the earners account paid by workers and the work account paid by employers being fully funded.
"This means there is enough money in those accounts to cover the ongoing cost of claims."