25 September 2013

Many Kiwis benefit from ACC levy cuts

“Many Kiwis, not just employers, have more money in their pockets following ACC levy cuts in 2012, and they stand to gain more if proposed cuts for 2014 go ahead,” says ACC’s Chair Paula Rebstock.

“Levies paid by employers were cut significantly in 2012. But so too was the Earners’ levy, which is paid by everyone in the paid workforce, including employees. As a result, all wage and salary earners are better off.”

Ms Rebstock says some employees may not be aware they’re paying a reduced Earners’ levy, because it’s deducted, along with PAYE, before wages or salaries are paid into their bank accounts.

“Without studying your payslip, it can be easy to overlook that you benefitted from the levy cuts.”

Ms Rebstock’s comments come as ACC’s public consultation over proposed 2014/15 levies enters its second week.

“This is an opportunity for all Kiwis to tell us what they think about our proposed levies, or any other aspect of the ACC Scheme.

ACC is proposing further cuts in 2014 to the average Work levy paid by employers, and the Earners’ levy.

ACC also proposes to introduce risk rating for cars in 2014. This could result in lower Motor Vehicle levies for around two million cars, which have safety features that reduce their risk of injury. No car owner will pay more than the levy they’re currently paying if this change goes ahead.

“These proposed reductions have been made possible by a combination of factors, including strong rehabilitation results and the impressive performance of ACC’s investments.

“ACC has also worked closely with businesses and the community on injury prevention initiatives, and we should never lose sight of the fact that ultimately, the best way to reduce levies is to prevent injuries from happening in the first place.”

Details of ACC’s 2012/13 financial performance will be made public next week, when ACC releases its Annual Report.

Levy consultation closes on October 15. ACC will consider all submissions it receives, before making its final recommendations to the Minister for ACC. The final decision on levies rests with the Government.

Details of proposed levy rates can be found in the consultation documents at www.acc.co.nz/levyconsultation.

ENDS

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