Parliament

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

 

ACC levies drop will save kiwi businesses $100 million

Rt Hon Jacinda Ardern

Prime Minister

Hon Iain Lees-Galloway

Minister for ACC

MEDIA STATEMENT

10 December 2018


The Government’s decision to reduce the ACC Work Levy will save New Zealand businesses $100 million over the next two years, say Prime Minister Jacinda Ardern and ACC Minister Iain Lees-Galloway.

The Government has also decided to hold all other ACC levies at their current rate.

The Government is determined to ensure Kiwis aren’t being charged more without reasonable cause, while lifting wages for New Zealanders,” says Jacinda Ardern.

“When the rises in ACC levies was first discussed the Government took a clear position that a compelling case would need to be presented in order for us to agree to levy increases, and that Cabinet would consider the wider public interest.

“We have done just that and concluded that the levies would not increase, and actually decrease for work levies paid by employers and self-employed people. This will save New Zealand businesses and their customers around $100 million over the next two years compared to current rates.

“We have been guided by advice from MBIE and Treasury in reaching this decision. Treasury advised that they support the proposed reduction in the Work levy and maintaining the current Earners’ and Motor Vehicle average levy rates, due to the high solvency levels of the accounts, and because they consider the assumptions to be conservative for a statutory scheme.

“This Government is committed to keeping ACC levies fair for businesses, workers and motorists, and no higher than needed to meet the real costs of injury claims,” says Jacinda Ardern.

Key aspects of the ACC levies for 2019/20 and 2020/12 include:

· the average Work levies paid by employers and self-employed people will decrease from 72 cents to 67 cents per $100 of liable earnings,

· the Earners levies paid through PAYE (or invoiced directly through ACC for self-employed people) will remain at its current level of $1.21 per $100 of liable earnings

· the average Motor Vehicle levies, which include the annual license levy and petrol levy, will remain at $113.94.

Minister for ACC Iain Lees-Galloway says alongside the reduction in Work levies paid by employers and self-employed, the motorists and earners levies would remain the same for the next two years. The ACC Vehicle Risk Rating (VRR) programme would also end.

“ACC made recommendations in line with the Funding Policy Statement gazetted by the previous Government. I carefully considered the advice on ACC’s assets and accounts. The Government needs to consider the wider public interest and these rates strike the right balance, fully-funding ACC accounts without increasing the burden on New Zealanders,” says Iain Lees-Galloway.

“The VRR programme, which applies different levy rates to different makes and models of cars based on their safety ratings, is challenging for ACC to administer and lacks evidence that it is contributing to a safer vehicle fleet in New Zealand.

“There is no evidence that variable levies based on VRR contribute to injury prevention or encourage the purchase of cars with higher safety ratings.

“It also loads more of the burden onto low-income people and families, as they are generally less able to buy cars with the best safety ratings.

“The Government has made road safety a priority in the transport budget, investing $4.3 billion over three years in programmes and projects aimed at saving lives on the road. This is a $1.2 billion increase over the previous three years,” says Iain Lees-Galloway.

The new Work and Earners’ levies will come into effect on 1 April 2019. The vehicle risk rating will no longer apply from 1 July 2019 with the Motor Vehicle rates coming into effect on the same date.

[ends]

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

The Gili Islands: A Community Earthquake Recovery Effort

Joseph Cederwall travelled to the Gili Islands in October 2018 to talk to locals about their experiences of the event and witness the impact and the rebuild efforts on this unique ecotourism destination.

2018 was a difficult year for the Indonesian archipelago. This chain of fragile and largely low-lying islands is situated on a particularly unstable segment of the Pacific rim of fire. Last year the islands were hit by a series of devastating natural events including a series of Lombok, Sulawesi and Java based earthquakes and resultant tsunamis.More>>

 
 

DHBs "Prepared": Junior Doctors Strike Tuesday, Wednesday

The needs of acute patients will be met during tomorrow's junior doctor strike, a DHB spokesperson says... Almost 3000 junior doctors are expected to walk off the job, which will affect all DHBs apart from West Coast District Health Board. More>>

ALSO:

Gordon Campbell: On MBIE’s Social Media Scam

Given the ambit of MBIE’s work, almost any form of social activity could qualify as being part of MBIE’s brief, so the privacy threats posed by this training programme are extensive. The current oversight safeguards seem threadbare to non-existent. More>>

ALSO:

JusTrade: New Campaign For A 21th Century Trade Agenda

‘Critique is no longer enough. If anything is to really change, we need to step away from the existing framework and take a first-principles approach to rethinking what will work for the 21st century.’ More>>

Earlier:

Gordon Campbell: Thompson + Clark Are The Tip Of The Iceberg

How can we tell where and how any lines are being drawn? Oversight is not exactly robust. If it were, Thompson + Clark would have been out of contention for state security work ten years ago. More>>

Trainers: Taratahi Institute of Agriculture In Interim Liquidation

Taratahi employ 250 staff and this year has provided education to over 2500 students. Taratahi owns and manages 8 farms throughout the country. More>>

ALSO:

IPCA Report: Complaints About Deputy Commissioner Wallace Haumaha

The Authority has found that DC Haumaha acted improperly by approaching staff and others to provide information to support him to refute the allegations about his 2016 conduct, or solicited other staff to do so on his behalf... More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels