1 Oct 2010

ACC levy increases all but ruled out by Smith

1:28 pm on 1 October 2010

Accident Compensation Corporation Minister Nick Smith has all but ruled out any ACC levy increases in the next year.

ACC is seeking public consultation on its annual proposed fee changes to help address a deficit of $10.3 billion.

The corporation's board has proposed that all earners have an increase of 6.7% on their ACC levies this year, as Earners Account reserves are depleted.

It's also proposed an average 2.5% levy increase on motor vehicles.

But Dr Smith says it's highly unlikely the Government will agree to any inceases as he says it's very conscious of the financial pressure families and businesses are under.

He also believes there is no justification for increasing ACC levies at this time, as its solvency is improving.

Dr Smith says ACC needs to manage its costs.