ACC Minister Nick Smith has come close to ruling out proposed ACC levy increases for the next financial year.The Accident Compensation Corporation (ACC) board is seeking public feedback on proposals for an average 2.5% levy increase for motor vehicles and
ACC Minister Nick Smith has come close to ruling out proposed ACC levy increases for the next financial year.
The Accident Compensation Corporation (ACC) board is seeking public feedback on proposals for an average 2.5% levy increase for motor vehicles and a 6.7% increase in the earners’ account in 2011/2012.
ACC chairman John Judge pointed out today that ACC is still running a $10.3 billion deficit.
“We’re mandated to have ACC fully funded by 2019 and achieving that goal becomes more problematic without the increases we’re proposing,” he said.
But the government is highly unlikely to agree to any levy increases.
“The government is very conscious of the financial pressure families and businesses are under and believes there is no justification for increasing ACC levies at this time,” Dr Smith said in a release today.
He suggested that, with the solvency of ACC’s accounts improving, the government can now focus on achieving a balance between future projected increases and ACC’s 2019 goal.
“ACC's focus needs to be on managing costs rather than simply passing on more costs through further levy increases,” he said.
The ACC board is required by law to initiate a public consultation on any proposed levy changes each year - but the government holds ultimate power over which changes are adopted.
ACC is also seeking submissions on next year’s implementation of the experience rating scheme – which will see employers’ levies partially based on their claims history.
The public consultation period will close on 29 October 2010.
