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ACC Levies Higher than They Need to Be

ACC Levies Higher than They Need to Be

The Government is charging New Zealanders up to $2 billion more in ACC levies than it needs to so it can create the illusion of a surplus, says Labour’s ACC spokesperson Sue Moroney.

“ACC and the Ministry of Business, Innovation and Employment (MoBIE) have told the government levies can come down, but it has ignored their advice.

“Under National it will be another two years before New Zealanders get a fair go.

“The fact is ACC Minister Judith Collins could reduce levies, right now, were she not so concerned with smoke and mirror surplus tactics.

"New Zealanders want to get to surplus by growing the economy, not by using props like excessive ACC levies and increased petrol tax.

“Money collected in ACC levies can't be used to fund anything else, as it is ring-fenced for injuries resulting from accidents, so its use to prop up a sham surplus is misleading.

“Both ACC and MoBIE told the Government that ACC's future funding would be sustainable with reduced levies from April 2013. Judith Collins ignored that advice citing "the Crown's operating balance" as a key reason.

“That money would be better off circulating in the economy, than being tied up in an ACC’s coffers where it is not needed,” Sue Moroney said.

ENDS

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