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Thursday, 3 April 2014

Economic Development: ACC levy reduction good news for small businesses

Just paid my car rego for the next 6 months... ACC is a big part of that.
ACC is an ongoing concern for small businesses, it's a big cost on their bottom line. The scheme provides protection for workers if they're harmed. ACC must strike a balance between these two demands and the requirement to be self-funding, which they are now doing. On Tuesday (1 April) reduced ACC levies kicked in, which is great news for wage earners and employers in New Zealand. The reduction in ACC levies means they will be $387 million better off. The levy cuts make employers and workers better off and show the scheme is in good health on its 40th birthday.

The average New Zealand household can expect to keep just over $200 extra each year and small businesses will be around $180 better off annually. Larger employers will receive, on average, a $6,000 reduction. The levy cuts are possible because ACC is now very close to being fully-funded. National’s responsible management of the scheme means ACC will hold sufficient financial assets to meet lifetime costs of all current claims. With ACC approaching this target, New Zealanders are starting to enjoy reduced levies.

Hopefully, there's more to come - late last year Cabinet agreed in principle to investigate a risk rating system for levies for car registrations (I just paid mine the other day, picture above) which could mean lower levies for most motorists.