Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Kiwis one step closer to lower ACC levies

Hon Judith Collins

Minister for ACC

17 September 2013 – Media Statement

Kiwis one step closer to lower ACC levies

ACC Minister Judith Collins is welcoming the announcement that the Accident Compensation Corporation (ACC) is looking into dropping its average levy rates.

Today ACC starts its public consultation on levy rates for levies in the upcoming 2014/15 year.

Earlier this year, Ms Collins signalled $300 million worth of levy cuts for taxpayers for 2014/15. 

“These levy cuts reflect positive gains made by the corporation across all its activities,” Ms Collins says. 

“ACC’s role is to reduce injuries and to help the injured back to independence after their injury as this is best for them, their families and their communities. The Corporation’s investment team has been in place for 17 years and has a long record of returns above benchmarks.

“Earners, employers and motorists may pay less in levies in 2014/15 as a result of ACC’s solid performance.

“ACC also protects New Zealanders by placing a greater focus on evidence based injury prevention.

“When teamed with progress in client services, the possibility of lower levies shows excellent improvement in the balance between the quality of services and the price New Zealanders pay for it.”

New Zealanders have until 15 October to have their say on ACC’s proposed levy rates by visiting ACC’s website: http://www.acc.co.nz/about-acc/consultation/levy-consultation/index.htm.

This feedback will be incorporated into ACC’s recommendations to the Government for consideration later this year.

Levy consultation FAQs
What levy changes is ACC proposing?

• 17% reduction in the combined average Work levy from $1.15 for every $100 of ‘liable earnings’ to $0.95 for every $100 of liable earnings (excluding GST) although some individual industries may see rises.
• 15% reduction in the combined average Motor Vehicle levy from $330.68 to $280 (excluding GST) although some individual vehicle classification may not change.
• 15% reduction in the Earners’ levy from $1.48 for every $100 of ‘liable earnings’ to $1.26 (excluding GST). including GST, the new Earners’ levy would be $1.45 per $100

What does ACC consider when setting levies?

ACC calculates proposed levy rates that take into account:
• projected claim costs for the coming levy year
• returns from ACC investments
• projected earnings on which levies are assessed
• the funding policy
• the number of registered motor vehicles and the amount of petrol consumed (for the Motor Vehicle Account).

Why do rates differ for levy payers and how does this fit with the principle of no-fault for the Scheme?

Where it is practical and appropriate, levies are set to fairly reflect the risk of the levy payer to the scheme. For example, riskier employers (professional rugby) pay more than less risky ones (accounting).
No-fault is a different concept about cover and entitlement and means you can be covered even if you were to blame, irrespective of how much you pay in levies.

What is the residual levy?
The residual levy exists because we are still paying off the ongoing costs of injuries that occurred before 1999. These costs need to be funded by 2019. 2
Levies for injuries that occurred after 1999 have been set on a full-funding basis, which means that the ongoing costs of injuries that incurred after 1999 have already been collected, not just the costs that were incurred in each year

Which classification units will have levy increases?
ACC is proposing increases for eight classification units (out of 539):
Netball, because claims in that of this group are getting worse
Seven others – these were increased in previous years but the change was capped in the previous year to smooth the impacts on the employer, so the proposed increases in 2014/15 are consequential to previous years’ decisions.

What will the petrol levy for 2014/15 be?
ACC is proposing that the petrol levy for 2014/15 will remain at 9.90 cents per litre.
Why do non-petrol driven vehicles pay less in annual vehicle licensing (rego) than petrol-driven vehicles?
This is because petrol-driven vehicles also contribute to ACC costs through the petrol levy. In general, the rego and petrol levies are set so that the average paid is the same for petrol and non-petrol vehicles.

What will the motor vehicle licence fee levy rates for each class of motor vehicle for 2014/15 be?
ACC is proposing for levies for most vehicle classes to go down with the average motor vehicle levy rate except for motor cycles and trucks.
The injury frequency and claim cost experience of riders of motorcycles and mopeds are increasing compared to that of the reference group - passenger vehicles. This relatively poorer performance is the reason ACC is recommending that the levies charged to these vehicle owners remain the same as for 2013/14 levy year.
Similarly, heavy goods service vehicles (trucks) are currently paying less than what they would if their levies were based on claims costs. It is therefore fair for their levies to stay as they are while other rates are reduced, so that their levies better reflect the costs they incur.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Last Sitting Day Of Parliament: Slave Ships Bill To Pass

The House resumed at 9am and MPs agreed to add the third reading of the Fisheries (Foreign Charter Vessels and Other Matters) Amendment Bill to this morning’s business.

The bill requires all foreign owned fishing vessels to fly under a New Zealand flag from May 2016 and obey all New Zealand laws. This includes labour laws...

Last night Opposition MPs accused the Maori Party of blocking the passage of this bill into law in this Parliament, no members of the Maori Party were in the House to answer the accusations though they denied this in a press release. More>>

 

Parliament Today:

Novopayout: Government-Owned Company To Take Over School Payroll

After lengthy negotiations, the Ministry of Education and the existing school payroll provider, Talent2, have settled both on the amounts payable by Talent2 towards the costs of remediating the Novopay service and a new operating model for the school payroll system. More>>

ALSO:

Employment: Labour Will Raise Minimum Wage, Restore Work Rights

A Labour government will raise the minimum wage $2 an hour to $16.25 and restore work rights to ensure the benefits of economic growth are shared fairly by all New Zealanders, Labour Leader David Cunliffe says. More>>

ALSO:

Police: Crewe File Review Released

No new evidence has come to light implicating any specific person as being responsible for the murders of Jeannette and Harvey Crewe... The review identifies there is a distinct possibility that Exhibit 350 (the brass .22 cartridge case) may be fabricated evidence, and that if this is the case, that a member of Police would have been responsible. More>>

ALSO:

Werewolf Issue #49: Gordon Campbell Interviews Laila Harre

For 25 years, Labour and National have been in virtual agreement about the basics of economic policy, and differed mainly on how to go about managing its social consequences. More>>

ALSO:

Greens: Plan To Protect Our Maui’s Dolphins

1. Protect Maui’s from being killed in the sanctuary set up to protect them... 2. Extend fishing protections to the entire Maui’s range... 3. Help protect the livelihoods of affected fishers by supporting them to adopt dolphin-safe fishing methods. More>>

ALSO:

Gordon Campbell: On National’s Electorate Deals

For all the talk yesterday from Prime Minister John Key about National being transparent about its electorate deals in Epsom and Ohariu, that transparency is entirely front-loaded. More>>

ALSO:

Greens: Oil Drilling Face-Off With Labour

The key policy points in the Green Party’s plan to protect our beaches from oil spills are to:
1. Prohibit deep sea oil drilling; 2. Implement compulsory shipping lanes for coastal shipping; 3. Build Maritime New Zealand’s oil spill response capability; and 4. Introduce a stronger legal framework so that when accidents do happen, the New Zealand taxpayer does not have to pay for the clean-up. More>>

ALSO:


Nick Smith v Fish & Game:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news