Levy cuts signal ACC scheme in good shape

The levy cuts that take effect today are a further sign of the sound financial management of ACC under this government, says ACC Minister Nikki Kaye.

“These cuts are possible because the ACC scheme is now essentially fully funded, which means it has enough money invested to meet the future costs of all current claims.

“This is a far cry from six years ago, when we inherited a scheme that saw the gap between its assets and liabilities grow by $4.8 billion in one year alone.”

From today, the average work levy paid by employers and self-employed people falls by around 5%, and from 1 July, the average motor vehicle levy will fall by around 41%.

Specific levies for cars will be publically available later this month – from 1 July, cars will be ‘risk rated’ so that owners of safer cars pay lower levies.

“New Zealanders will have around $480 million extra in their back pockets because of the levy cuts that take effect this year.

“This follows on from cuts totalling $387 million last year.

“In total, New Zealanders will be around $1.5 billion better off because of ACC levy cuts made by the government since 2012.

“Looking ahead, we’re committed to keeping levies as low as possible, while also ensuring the scheme is sustainable and able to withstand economic volatilities.

“With the scheme now in the best financial shape it’s ever been, I look forward to seeing the results of work underway at ACC to improve service, enhance injury prevention and increase public trust and confidence.”