ACC levy rates to stay unchanged until 2022

ACC levy rates to stay unchanged until 2022 | Insurance Business

ACC levy rates to stay unchanged until 2022

The Accident Compensation Corporation (ACC) has announced that its levy rates will remain the same until 2022.

According to the Crown entity, the government is continuing the current levies for the 2021/22 year as part of a set of changes to help ease the financial pressures of COVID-19 and account for an uncertain economic outlook.

Levies will stay the same until March 31, 2022 for work and earners’ levies, and until June 30, 2022, for motor vehicle levies.

“We’re taking practical steps to support levy payers throughout these difficult times, while also safeguarding the ACC scheme,” Minister for ACC Iain Lees-Galloway said in a statement.

“We will be maintaining the current levy rates for the next two years. The economic outlook is uncertain, so holding levy rates is a prudent decision. It provides some certainty to businesses and other levy payers and gives ACC more time to reliably assess the impact of COVID-19 on its finances.”

Lees-Galloway added that the previous government increased levies during the global financial crisis but later found out that they were too high in the following years. Thus, the ACC will take a more cautious approach this time.

“ACC is also helping businesses by delaying invoices, normally sent in early July. These will be issued in October to give firms more time and flexibility in making their levy payments. Other invoices issued this year will also be on hold for three months,” he said in the announcement.