Finance

The proposed ACC levy changes see an increase for some, a reduction for others.

Employers can pay lower ACC fees while workers and motorcyclists pay more as the agency opens up consultations on the proposed new levy rates.

ACC Building

Image: RNZ / Richard Tyndler.

The changes come as the ACC seeks to reduce the فرق 1.39 billion gap in the amount needed to meet future injury claims.

The revision of the cards includes a reduction in the average work-levy rate for employers and self-employed, but an increase in the rate for earners and motorists.

The average work levy rate is proposed to be reduced to موجودہ 0.63 from the current rate of 67 0.67 per payroll in 2022/23, then to 65 0.65 in 2023/24 and to 67 0.67 in 2024/25.

The current earners’ levy rate is proposed to increase from $ 1.21 per $ 100 wage to 1. 1.27 in 2022/23, 1. 1.33 in 2023/24 and 1. 1.39 in 2024/25.

Motor vehicle rates are proposed to increase from $ 113.94 per vehicle to $ 120.20 in 2022/23, 128 128.83 in 2023/24 and 13 138.08 in 2024/25.

The proposals mean that the average cost of levies for homes will increase.

A family with a household income of 85 85,000 and two cars currently pay 24 24.11 a week. It will increase to 25 25.44 a week in 2022/23, 26 26.76 per week in 2023/24 and 28 28.10 per week in 2024/25.

A family with a household income of 12 129,000 and three cars currently pays 36 36.36 a week. It will increase to 38 38.24 per week in 2022/23, 40 40.21 per week in 2023/24 and 42 42.22 per week in 2024/25.

On the business side, however, a small home-building firm with eight employees earns 70 70,000 and a small fleet of six cars currently pays 192 192.85 a week. It will drop to $ 166.05 in 2022/23, then to $ 171.28 per week in 2023/24 and to 7 177.66 per week in 2024/25 – which is still lower than the actual rate.

Mike Tully, acting chief executive of the ACC, said more staff had been hired to reduce the workload.

Mike Tully, acting chief executive of the ACC, said more staff had been hired to reduce the workload.
Image: Chris Code

Mike Tully, acting chief executive of the ACC, said the changes are different because the balance sheet is different for each levy account, and by law it is not used to close the gap between one account and the other. Can do

“When we look at the funding for each account, the self-employed account surplus this year is more than what we are proposing. Allows for every levy account, “he said.

Tully said Levies has not kept up with the growing population and the number of claims, as well as the rising costs of health care.

“We accept claims of an estimated 2 million injuries a year, and the number of these claims continues to grow as New Zealand’s population grows older,” he said.

Consultations on the proposed changes will close on October 5, and the final decision will be made by the Cabinet.

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