NZ Accident Compensation: ACC levy increase whacks farmers bent on trimming costs
October 19th, 2009
Fed farmers wants the Govt to reign in what it sees as excesses in the way the Accident Compensation Corporation works claiming it has turned into a social welfare agency. It wants entitlements cut rather than levies boosted. The call comes after the Govt announced major hikes in levies with farmers being amongst the hardest hit. The rural sector pays work levy rates for ACC which average about $1.97 per $100 of earnings for the self-employed and employees, well above the national average $1.31.
In a worst-case scenario, Fedfarmers calculates the levy could jump 70% to $3.35 and farmers could also pay a substantially higher motor vehicle levy – $417 – up from the present $287. The actual increase may be two-thirds less once the new legislation is enacted, but the bill may morph and change as it heads through the Select Committee process, given opposition MPs are grumbling about details like the scrapping of ACC in suicide cases.
Fedfarmers ‘ ACC spokesman, Donald Aubrey, says change is needed. “There is an urgent need to rein ACC in for the good of all working NZers.” However, Aubrey is supportive of ACC Minister Nick Smith’s intentions to impose greater control over ACC, saying the previous administration had allowed the scheme to change into “a social welfare agency.” Instead of increasing levies, “it is time the Govt made some tough decisions. I realise some of those decisions may be politically unpopular, but ACC must be brought under control.”
Copyright © The Main Report Group - NZ AGri-Business
