ACC Announces Proposed Changes to Levies
ACC today released its proposed changes to levies as part of the biannual levy setting process.
Members of the public are invited to provide feedback to the ACC Board on the proposed changes before the Board makes its final recommendations to the ACC Minister for a decision, says ACC Board Chair Dame Paula Rebstock.
The proposed changes for the 2019-2021 levy period include:
• Decreasing the average work account levy for employers from $0.72 to $0.67 (a 6.9 per cent decrease) for every $100 of liable earnings.
• Increasing the earners’ levy for workers from $1.21 to $1.24 (a 2.5 per cent increase) for every $100 of liable earnings.
• Increasing the average motor vehicle levy for road users from $113.94 to $127.68 (a 12.1 per cent increase), which includes a proposed increase of 1.9 cents per litre for petrol.
“Since we last adjusted levies in 2016, the number of claims for injuries have grown by 6.4 per cent, with more people than ever needing our support,” says Dame Paula Rebstock.
“Experience tells us that during times of economic growth such as we have experienced over the last few years, people tend to lead more active lives, exposing themselves to greater risk. New Zealand’s population is also growing and ageing.
“Pressures on costs includes increasing medical costs; increased costs for care and support workers resulting from the pay equity settlement agreed by Government; the introduction of free doctor visits for under 14s, and increases in weekly compensation claims.
“In addition, the impact of lower interest rates on our investments, and higher inflation forecasts, will have a significant influence on future costs. These factors need to be reflected in the levy rates now to ensure that we can support our clients’ needs throughout their lifetime.
“Despite the cost pressures, our investment in injury prevention and ongoing changes to the way we work are having a positive impact. Over the past two years we have also achieved higher investment returns than forecast.
“This is helping us to manage increasing costs, and, with the exception of the motor vehicle account which is slightly higher than anticipated, we have kept levies from increasing as much as we had thought in 2016,” says Dame Paula Rebstock.
ACC is taking the consultation process around New Zealand with a roadshow featuring a “Ask the Nation Station” that will visit nine towns and cities during the next four weeks. Members of the public will be able to use the station to find out more about the proposed changes to levies, and to make a submission.
People can find out more details, and provide their feedback, on the consultation website www.shapeyouracc.co.nz. Consultation runs from 27 September to 25 October.