ACC levy reductions become law

Press Release – New Zealand Government

21 February 2012 Media Statement ACC levy reductions become law ACC levy reductions worth more than half a billion dollars a year to workers and businesses have been signed into law by Governor-General Sir Jerry Mateparae. As announced last year, …
Hon Judith Collins
Minister for ACC

21 February 2012 Media Statement
ACC levy reductions become law

ACC levy reductions worth more than half a billion dollars a year to workers and businesses have been signed into law by Governor-General Sir Jerry Mateparae.

As announced last year, ACC’s $3.5 billion surplus in 2010/11 and continuing improvements in rehabilitation rates have enabled the reduction in levies that will save households $340 million a year and businesses $247 million a year.

“These significant levy reductions are great news for New Zealand workers – keeping money in their pockets. It is equally good news for businesses by improving their cash flow,” ACC Minister Judith Collins said.

The levy on wage and salary earners is reduced by 17 percent – or $170 a year for someone on the average wage The levy on employers and the self-employed is reduced by 22 percent – a saving of $1120 a year for the average small business with seven employees.

Significant improvements in ACC’s financial position in 2010/11 along with improved rehabilitation rates have made the levy reductions possible.

“Rehabilitation rates for injured people have improved with 93 percent of injured clients now returning to work or normal life within a year and 20 percent fewer people on long-term compensation.

“ACC is doing an excellent job helping get injured New Zealanders back to work and normal life as quickly and safely as possible,” Ms Collins said.

The Earners’ Account Levy (paid by wage and salary earners) will decrease from $2.04 to $1.70 (including GST) and the average Work Account Levy (paid by employers and the self employed) will decrease from $1.47 to $1.15 (excluding GST) per $100 of liable earnings from 1 April 2012. Work levies for individual companies depend on their industry classification and experience rating.

Content Sourced from scoop.co.nz
Original url