ACC’s financial health may mean lower levies

Posted By TEU on Sep 19, 2013 | 1 comment

ACC is proposing a 15 percent cut in the earners’ levy paid by all workers, as well as a 17 percent cut to the work levy paid by employers and self-employed people.

However, the New Zealand Herald reports that the government, which ignored the corporation’s recommendation for $330 million of cuts last year, has indicated it is likely to go with far smaller cuts than recommended. ACC is consulting the public on the levies until 15 October, prior to a final government decision later this year.

CTU policy director, Bill Rosenberg says the proposed fall in levies show that cuts in entitlements and harsh treatment of injured people making ACC claims were unjustified

“The Government should restore the entitlements it withdrew in 2009 and consider increasing entitlements rather than simply continue to reduce levies.”

“We are also deeply concerned that the proposal to increase employer discounts for having low numbers of claims will put increased pressure on their employees to not report claims, report them as non-work injuries, or return to work too early.”

Bill Rosenberg also says ACC’s strong financial position shows the allegation that ACC was in deep financial trouble was political spin.

“[That allegation was] used to justify cuts in in entitlements and a niggardly approach to treatment and compensation of people with injuries. There was never any reason for the severe reductions. The short term effects of the global financial crisis on investment returns and interest rates were used to justify a long term cut in entitlements and treatments.”


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