A glimmer of light amidst the economic gloom – ACC levies will be reduced in the wake of ACC’s healthy surplus.
ACC Minister Nick Smith said:
Zealanders and will assist with our economic recovery,” ACC Minister Nick Smith said.
“The levy on wage and salary earners is reduced by 17% – or $170 a year for someone on the average wage. The levy on employers and the self-employed is reduced by 22% – a saving of $1120 a year for the average small business with seven employees.
“These levy reductions are possible because of the huge improvements in ACC finances from the deficits of $2.4 billion in 2007/08 and $4.8 billion in 2008/09, to surpluses in 2009/10 of $2.5 billion and today’s announcement of a $3.5 billion surplus in 2010/11.
“This financial turnaround and levy reductions has been achieved by major improvements in rehabilitation rates and better management of costs. Rehabilitation rates steadily declined from 2005 to 2008, but have consistently improved since with 20% fewer people on long-term compensation. ACC’s claim costs rose 58% from $1.93 billion in 2005 to $3.06 billion in 2008, but have since been trimmed back by 15% to $2.58 billion in 2010/11.”
ACC has been working with long term claimants and encouraging short-term ones back to work sooner.
As part of that businesses have been encouraged to help injured staff return to work, even if not to their usual role. The longer people are off-work the greater the chance of them not returning and this policy has helped ensure short term claimants don’t turn into long term dependents.