Improved ACC governance - but risks remain
18 October 2016
The latest consultation on the level of ACC levies demonstrates the improved governance of the ACC scheme, says BusinessNZ.
The proposed levies for 2017-19 are lower than in previous years across most ACC accounts, reflecting the fact that most accounts are now over-funded - containing more funds than needed to reach ‘fully funded’ status.
BusinessNZ Chief Executive Kirk Hope said employers, employees and others paying ACC levies would welcome the fact that excess funding was being returned to levy payers over time.
"The recent passing of the Accident Compensation (Financial Responsibility and Transparency) Act has introduced a much more transparent process for levy determination," Mr Hope said.
"This Act has proved a major breakthrough in minimising - although not yet completely eliminating - the risks associated with government intervention in the levy setting process.
"It is also pleasing to see a proposal to review the Motor Vehicle Account, in light of concerns that this account is out of step with other ACC accounts, through its continuing subsidisation of motor cycle accident costs by other road users. This continuing subsidy is inconsistent with the new transparent approach to levy setting.
"It is also pleasing to see work being done to increase incentives for safe workplace practice, and business would like to contribute to this work to ensure an incentives system that is a clear improvement on incentive schemes currently in place."
For more information contact:
Kathryn Asare | Communications Manager, BusinessNZ
Email: firstname.lastname@example.org, Tel: +64 (0)4 496 6556, Mobile: +64 (0)21 555 744