Positive progress by ACC

A sounder financial footing for ACC along with lower levies for 2012/13 is good news for premium payers, BusinessNZ says.

Reductions of 17 percent in the Earners Account and 22 percent in the Work Account are proposed in the ACC Levy Consultation papers released today by the ACC Board.

They show a deficit of $7.8 billion across all ACC accounts, an improvement on the nearly $13 billion deficit a couple of years ago, achieved through better health and safety practices, better and more rapid rehabilitation, and improved investment returns.

BusinessNZ Chief Executive Phil O’Reilly said the reductions would be welcomed by both businesses and employees.

But Mr O’Reilly expressed concern that pre-1999 costs, which include pre-1992 non-work accident costs, would continue to be funded by employers.

“Employers are being required to pay millions of dollars for claims that have no relation to the workplace at all. In the interest of fairness, these residual claims should be met by general taxation.”

BusinessNZ will be making a submission on the ACC levy consultation 2012/13 which closes on 15 August 2011.