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Labour hikes ACC levies in Xmas rush of bad news

Pansy Wong MP National Party ACC Spokeswoman

19 December 2007

Labour hikes ACC levies in Xmas rush of bad news

National Party ACC spokeswoman Pansy Wong says the Government's Christmas present to New Zealander workers, is effectively a tax increase by way of increased ACC levies.

"Labour is using its cynical pre-Christmas dump to hide these levy increases."

The employee's levy going from $1.16 to $1.24 per $100 of income.

"More information is required to justify why scheme costs have risen in excess of inflation and why economies of scale are not being achieved as claim numbers rise," says Mrs Wong.

The motorists' levy is also increasing. The average levy per vehicle is increasing from $204.78 to $254.63. That means the price of petrol will be going up for New Zealanders by around two cents a litre.

At the same time, the work account levy is going from $1.32 to $1.26, not $1.25 as forecast in consultation document.

"I question the continued large surpluses in the Work Account, which are now more than $800 million, and a risk premium of 11% for a corporation that faces no competition.

"National's submission to the levy consultation process highlighted the lack of explanation for large administration cost increases across accounts. So far, no justification has been forthcoming.

"When Labour is raising taxes, taxpayers deserve to know why."


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