ACC projected levy blow-out concerns employers

Employers will balk at the projected 62 per cent increase in the average ACC work levy over the next five years, says Business NZ.

The work levy, which employers pay for workplace accidents, is projected to increase from $0.70 cents per $100 of liable earnings to $1.14 by 2014.

The projections are contained in the ACC 2009/10 Levy Consultation Discussion Documents. Business NZ made an extensive submission, which was lodged with ACC today. Link to the submission here

Business NZ chief executive Phil O’Reilly says the increases will not only affect employers. Motorists and employees will also suffer, with motorists facing a 60 per cent increase in ACC levies and employees a 43 per cent increase.

“It’s unacceptable for the Government to keep increasing costs to the business sector, particularly during the current recession and when most employers have little option but to accept ACC levy increases, given that ACC is a state-run monopoly.”

The ACC Board will analyse submissions and make final recommendations to Government on the proposed levies before Cabinet finalises its decisions –likely to be late December.