12 Jul 2011

More work needed on ACC system, says business group

10:32 am on 12 July 2011

Business groups have welcomed moves to cut ACC levies but say more could be done to make the system fairer for firms.

ACC plans to cut employee and employers levies from April next year because its finances are in better shape, having managed to reverse deficits and post surpluses of $2.5 billion in recent years.

The Government says the 17% drop in the employees' levy will save households $340 million a year, while a 22% drop for employers will save businesses $247 million a year.

Business New Zealand economist John Pask says the cuts will leave employers and employees with more cash in their pockets, but the system is still far from perfect.

He says employers were paying for pre-1992 non-work accidents and that it is unfair they continue to wear the ongoing costs.

Submissions on the proposed levy changes close on 15 August.