Workers, employers keep $387m in 2014/15

Workers and employers will pay $387 million less in ACC levies in 2014/15, ACC Minister Judith Collins announced today.

“This Government is committed to the long-term sustainability of the ACC scheme so that it is working for the benefit of both levy payers and claimants,” Ms Collins says.

“Workers and employers will be paying less thanks to the Corporation’s astute financial management, outstanding investment performance and dedication to effective rehabilitation.

“The average New Zealand household can expect to keep just over $200 each year. Small businesses will also be around $180 better off annually and larger employers will receive, on average, a $6000 reduction.”

Ms Collins says the cuts largely reflect the Earners Account (paid by workers) and the Work Account (paid by employers) being fully funded. This means there is enough money in those accounts to cover the ongoing cost of claims.

Motor Vehicle Account levies, incorporated into car registration and petrol prices, will remain the same as that account is not yet fully-funded. The Government expects to introduce cuts for motor vehicle owners from 1 July 2015.

Ms Collins says the Government is on track for further levy cuts in 2015/16 as signalled in the Government’s budget this year.

“It’s important New Zealand maintains its fiscal credibility by reducing pressure on the exchange rate and interest rates to ensure private sector growth and investment are supported. This is especially important as the Canterbury rebuild gathers pace.”

The new rates will be in place for the levy year which starts 1 April 2014.

For a copy of the Cabinet paper and Regulatory Impact Statement see:
http://www.dol.govt.nz/initiatives/workplace/acc/levies