1 Oct 2013

ACC reports $4.9b surplus and talks of cuts to levies

6:49 pm on 1 October 2013

A strong annual report from the Accident Compensation Corporation on Tuesday has it talking about the chance of more cuts in ACC levies.

ACC's report for the 2012-2013 financial year shows a net surplus of $4.9 billion, well ahead of budget.

Chief executive officer Scott Pickering says the strong performance has already given the Government confidence to signal it believes decreases in ACC levies next year and the following year are sustainable.

"As we've pointed out today we're in a very strong position financially, projections for our levies continue to be that they're in a position where we can look to the future with some degree of confidence."

Mr Pickering says ACC is well on track to meet its objective of being financially sustainable - the point at which assets match forward costs - by 2019.

He says two accounts - the Earners Account and the Work Account - are now fully funded; the Motor Vehicle Account is nearly there, and on average work account levies are at an historical low.

But Wellington lawyer Hazel Armstrong, who specialises in accident compensation law, is critical of ACC's $4.9 billion surplus.

She says the big surplus comes at the expense of many claimants who have been shut out of the scheme, denied cover and entitlement and given inadequate rehabilitation.

Ms Armstrong says the ACC Futures Coalition is calling for cross party support for a more comprehensive and fairer rehabilitation system for claimants.