ACC unveils proposed levy rates changes

The Accident Compensation Corporation (ACC) has released its proposed changes to levies for 2019-2021.

The proposals include:

• Decreasing the average work account levy for employers from $0.72 to $0.67 (a 6.9% decrease) for every $100 of liable earnings;
• Increasing the earners’ levy for workers from $1.21 to $1.24 (a 2.5% 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% increase), which includes a proposed increase of 1.9 cents per litre for petrol.

ACC Board chair Dame Paula Rebstock is inviting the public to make a submission on the proposed changes before the board makes its final recommendations to the ACC Minister for a decision.

She noted the number of claims for injuries has grown by 6.4% since the last adjusted levies in 2016.

“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,” Rebstock said. “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,” she added.

ACC will also conduct a roadshow in nine towns and cities, where the public can make their submissions. Consultation closes on October 25.