1 Dec 2009

Workers face big increase in ACC levies

9:13 pm on 1 December 2009

Workers will have to pay hundreds more dollars a year if the Government agrees to levy increases recommended by the Accident Compensation Corporation.

The ACC on Tuesday released its final proposals for next year's levies, which the corporation has sent to ACC Minister Nick Smith. The Government is due to make a decision on rates before Christmas.

While ACC has slightly reduced proposed increases for motorcycle owners, the levies it recommends for employers and workers remain the same.

Employers would pay a levy for work injuries of $1.89 per $100, a 44% increase.

Employees would pay a rate of $2.80 per $100 for non-work claims, a 64% increase.

For an employee earning $45,000, the annual levy for non-work injuries would increase from $765 to $1,260 - an increase of $495.

For someone earning $60,000 a year, the levy would rise from just over $1000 to almost $1,700.

However, Radio New Zealand understands the final increases will not be as steep as has been proposed by the corporation.

The Government has already indicated it will set the levies at a lower level by taking into account legislation before Parliament that pushes out the date for full funding of ACC.

The office of the ACC Minister, Nick Smith, says more advice will be sought from the Department of Labour before Cabinet considers and sets the levies.

Motorists subsidise bikers - ACC chairman

In an effort to cover the true cost of motorcycle accidents, ACC proposed hefty increases for owners of large motorbikes, sparking protests throughout New Zealand.

Following a four-week consultation, the corporation has backed off slightly on the increases.

Owners of motorbikes over 600cc would pay a levy of $739.32 next year, instead of the $781.12 originally proposed.

ACC chairman John Judge told Checkpoint motorcyclists have a disproportionately higher number of accidents and they haven't addressed the question of why they should be subsidised by motorists.

Mr Judge also says the corporation has been able to propose slightly lower levies because the original estimates were made earlier on.

He says it's since been established the levies can be lower, hence the adjustment.

Mr Judge says it's the job of the ACC to make recommendations and - contrary to claims - there was no operating profit.

He says the levy increases are necessary in order to retain the ACC scheme.

Bike owners to continue protests

The Ulysses Motor Cycle club's National President, Peter McIntosh, says the 20 days ACC has had to consider nearly 3000 submissions was not enough and the rises are unacceptable.

'Motorcyclists will feel more annoyed and more upset now than they were when the original levies were put out, because we have made an effort to talk to people and been ignored.'

Motorcyclists have vowed to continue to fight any major levy increases.

AA wants safe motorcycle course

The Automobile Association wants a safe motorcycling training course to be made available to bikers who want to reduce their ACC levies.

The association's spokesperson, Mike Noon, says it agrees with a levy rise for motorcyclists, but says it should be phased in.

He thinks a training course would ensure that safer motorcyclists don't have to foot the bill for those who are irresponsible.