ACC levies have risen considerably for many business people over the last couple of years, so when the Government is cutting back it’s a welcome break to hear of supluses. ACC has made great strides in the last several years in reducing management costs and greatly raised rehabilitation rates, which has resulted in 20% fewer people claiming ACC compensation long-term. This has enabled an ACC levy reduction.
A $3.5 billion surplus annouced last year has enabled ACC to reduce levies. This has been signed into law and will save households and businesses $340m and $247m respectively this year.
Wage and salary earner levies gave reduced by 17% (That is $170 a year for an everage income earner), or by 22% for employers and self-employed people. This is a welcome savings of $1,120 a year for and average small business employer with seven employees.
The Earners’ Account Levy (paid by wage and salary earners) has decreased from $2.04 to $1.70 (incl. GST) and the average Work Account Levy (paid by employers and the self employed) decreased from $1.47 to $1.15 (excl. GST) per $100 of liable earnings. Work levies for individual companies depend on their industry classification and experience rating.