25 Sep 2012

ACC considers levy cuts

9:38 pm on 25 September 2012

The Accident Compensation Corporation is proposing cuts to employers' and earners' levies, for the second year in a row.

The corporation announced on Tuesday proposals to shave 13% off the average work levy, paid by employers and the self-employed.

It would cut 12% from the earners' levy, which is paid by everyone in the workforce.

There would be no change to the motor vehicle levy.

ACC says its rates are calculated by looking back on the claims received in the past from each group and using that information to predict how many claims it will get next year and what they will cost.

The proposals are due to go out for consultation.

The commission's new chair Paula Rebstock told Radio New Zealand's Checkpoint programme it is approaching solvency very quickly in the first two accounts, although it will be two years before the motor vehicle levy has enough money to meet claims.

She says the corporation wants to reduce the levy to what it thinks will be a sustainable level in the future.