ACC costs and changes
Nick Smith has announced some changes to the ACC scheme, to make it more affordable and stop huge employee levy and vehicle levy increases:
- Reversing 2008 income compensation extensions covering casuals, part-timers, non-earners and abatements for holiday pay
- Reversing entitlements for wilfully self-inflicted injury and suicide
- Strengthening disentitlements for criminals
- Enabling safety incentives for employers and vehicles
- Extending full funding date from 2014 to 2019
- Requiring far more open reporting on ACC’s liabilities
The changes are hoped to reduce ACC liabilities by $2 billion.
ACC costs have risen by 57% in the last four years. So even with those changes, levies still have to increase. They are:
- a $32 increase in the motor vehicle levy taking the fee for a petrol car up from $136.44 to $168.46
- ACC petrol levy will rise from 9.34 cents per litre to 9.90 cents per litre
- Motorcycle levies to now vary by size going from $252.69 for all to $257.578 for under 125 cc, $511.43 for 125 – 600 cc and $745.77 for over 600cc