What About The Other $400 Million?

Government plans to merge the ACC employer and self employed accounts are grossly unfair, according to Paul Winter of EMA Central.

A Transport and Industrial Relations select committee report completed just before Christmas confirms government plans to go ahead with the merger.

"The merger is unfair for two reasons," Mr Winter said. "Firstly, the current separation between employer and self employed levies reflects the difference in risks for the self employed. There are a number of reasons for this difference. Instead of hiding the problem by merging the two accounts, the government ought to keep the two accounts separate and look at ways to improve the safety record of the self employed.

"Secondly, the employers account had an estimated surplus of $500 million at the end of 2006," Paul Winter said. "This shows employers have been overcharged for ACC cover for the past seven years.

"The select committee report refers to rebates of $100 million to employers and higher rates for the self employed over the next three years while the accounts are merged. But employer levy rates have not been reduced for 2007 they are unchanged at $1.21 for every $100 payroll.

"In any case, even if employers do receive a $100 million rebate, what about the remaining $400 million? This money should be returned to employers," Mr Winter said.

EMA Central also believes that employers will end up paying more for ACC in the future if the merger goes ahead, as they will be subsidising the higher costs of the self employed on an ongoing basis.

The Injury Prevention, Rehabilitation, and Compensation Amendment Bill is due for its second reading once Parliament reconvenes.

ENDS

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