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ACC proposes levy reductions for workers and businesses

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Mon, 11 Jul 2011 4:18p.m.

ACC Minister Nick Smith (NZPA file)

ACC Minister Nick Smith (NZPA file)

ACC levy reductions of more than half a billion dollars for workers and businesses have today been approved for consultation by the Government.

The proposed reductions would save households $340 million a year and businesses $247 million a year from April 2012.

ACC Minister Nick Smith says the reductions would be affordable following the turnaround of ACC’s deficits of $2.4 billion in 2007/08 and $4.8 billion in 2008/09 to surpluses of $2.5 billion in each year since.

“The big turnaround is because ACC’s annual claim costs, which grew by 50% between 2005 and 2008, have since been reduced by 15%. Improved rehabilitation has seen a 20% reduction in the number of people on long-term compensation, which is ACC’s biggest cost,” says Mr Smith.

The Earners' Account Levy (paid by wage and salary earners) is proposed to decrease from $2.04 to $1.70 (including GST) and the average Work Account Levy (paid by employers and the self-employed) is proposed to decrease from $1.47 to $1.15 (excluding GST) per $100 of liable earnings from 1 April 2012. 

The Government is taking submissions on the proposal until August 15, with final levies for 2012/13 to be determined in September.

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Comments

11 Jul 2011 10:51p.m.

clinton wrote:

Another spin off for the rich and those on minimum wages have to pay for Smiths exorbitant lies about the problems that ACC was in.Just another kick in the guts by this National government for those who used to get treatment such as physio,hearing aids,also treatment,all went out just like when The Nats were in last time when B Birch got rid of ACC,The ACC was the worlds finest medical scheme through out the world,and along came Smith just too stuff it up,also all the other port folios he holds are nothing but stuff ups.This is nothing but dangle the carrot for election time,dirty tricks campaign has started by the National govt already,Just on 4 months out from elections,Just like Bill English is starting find heaps of money now too sweeten their fall from leadership come November.Robert I agree there should be an enquiry into this.Clarke it was not a bribe or stuff up but a real Jack up by Key and his cronies to make it look good for them come November.

11 Jul 2011 07:10p.m.

maurie dewolf wrote:

why would you sell a business that has just made a profit of $7.2 billion profit if nicks smiths figures are right.
you couldn't unles you are mental. that is big profits and nz owned. leave this acc alone.

11 Jul 2011 05:37p.m.

Mouthguard wrote:

The reduced levies will match the reduced care.

11 Jul 2011 05:35p.m.

jj wrote:

What a utter load of bull shit from Smith,This is an electioneering gaff to say the least.ACC was never in trouble this was a story that was to make every one agree with the Nats at the time it went to air.This is another reason to not trust this National Government,full of crap,told us from November 2009 right up to the 2011 elections that Acc was in dire debt,now the Jenny has changed those figures around just to say they can make reductions too the levies.Smith got burgled last week did they take his brain with them?just wondering.

11 Jul 2011 05:24p.m.

robert mcintosh wrote:

$7.3 billion turnaround in in under 3 years means there should be an enquiry into how this this figure was reached.
that is disgusting , the costs of acc are grossly out of line with this sort of costing. nick smith accused acc of bad management saying they were in dire straights. well
these figures expose dr smith of politicing gibberish and should be held to account for this shameful spin.
it seems that acc is robbing everyone to get these figures that dr smith announces here. there needs to be an enquiry.

11 Jul 2011 04:38p.m.

Clarke wrote:

An election year bribe or merely a stuff up?.