7 Nov 2010

No change to earner ACC levy system next year - Govt

2:45 pm on 7 November 2010

ACC Minister Nick Smith says a proposal to allow taxpayers the right to choose the amount of accident compensation cover they pay for will not be introduced next year.

The proposal, called experience ratings, reduces levies for those who are prepared to accept longer waiting times for treatment or lower payouts.

A consultation process finished last week, asked taxpayers whether they are interested in the idea.

For employers, it reduces levies for those with good safety records, and will be included in Accident Compensation Corporation levy changes.

Dr Smith says while experience ratings will be added to the employer account in April next year, it is significantly more complicated to add it to either the earner or the motor vehicle account.

He says the Government is interested in whether people want the option, but will not make any key decision on this next year.

Labour leader Phil Goff says any move to introduce the option to the earner and motor vehicle account is a move toward user pays, and ramps up the cost for those who are more risk of injury.