ACC levy shocker will hurt farming

While levy increases were always on the cards, Federated Farmers was shocked to discover farmers’ ACC levy rates could jump by 70 percent.

“ACC’s bombshell will hurt farmers already struggling to make ends meet,” says Donald Aubrey, Federated Farmers ACC spokesperson.

According to ACC levy consultation documents, the work levy rates for both employers and the self-employed will increase from $1.97 to $3.35 per $100 of earnings. The motor vehicle composite levy, meanwhile, is also set to rise dramatically from $287 to $417.

“As farmers cut discretionary spending, the levy increases add yet another cost that somehow has to be absorbed. Although these increases will be moderated by the Government’s legislative changes tabled in Parliament today, there is an urgent need to rein ACC in for the good of all working New Zealanders,” added Mr Aubrey.

“This is clearly illustrated by ACC’s multi-billion dollar claim liability blow out, which led to today’s levy increases. The blow out reflects how ACC has been allowed to run out-of-control.

“Add this to the previous Government’s inclination to change ACC from an accident insurance scheme to a social welfare agency and the underlying problems become clear.

“Federated Farmers has consistently expressed concern about the escalating costs of the ACC scheme and the need for firmer management of claims and costs. Yet our warnings went unheeded and it now gives us little satisfaction to say ‘we told you so’.

“Instead of significantly increasing levies, it is time the Government made some tough decisions. I realise some of those decisions may be politically unpopular, but ACC must be brought under control.

“For a start, the Government needs to take a close look at its predecessor’s expansions, with the aim of bringing ACC back to basics.

“It’s also time some practical solutions to ACC’s woes are investigated. This may include cutting entitlements, reining in the number of ‘medical conditions’ covered, clamping down on the cost of claims and managing long-term claimant’s back into the work force,” Mr Aubrey concluded.