23 Jun 2011

Room to reduce ACC levies, says minister

10:07 pm on 23 June 2011

The Minister for the Accident Compensation Corporation says there is room to reduce worker and business levies because its finances have improved.

Nick Smith appeared before Parliament's transport and industrial relations committee on Thursday where he told MPs ACC is expecting a $2.5 billion surplus for this financial year.

The result - which is $1.5 billion better than forecast - comes from improved rehabilitation, reduced claim numbers and investment returns.

Dr Smith says ACC's earners and workers accounts are nearing 100% solvency and there is room for levy reductions.

"We will need to see the actual fiduciary data that is put together for the end of the financial year, but my hope is that with households and businesses under quite a lot of financial pressure ... is before year's end we can deliver a reduction in levies."

ACC's proposed levies will go out for consultation in July, he says.