ACC levies set to jump

ACC chairman John Judge, left, with ACC Minister Nick Smith at the today's announcement. Photo / NZPA

Changes to ACC are likely to cost the family on the average income of $45,000 an extra $315 a year.

ACC has today released its proposals, which include increases to levies such as motor-vehicle registration.

Motorists will have to pay around $30 a year more, from $287 to $317, through increases to registration and a rise at the pump.

Levies for the self employed will increase by 16 cents, to $1.47 per $100 earned. Levy rates for no work claims will go up by 67 cents, which is roughly a 45 per cent increase.

However Minister Nick Smith says the proposed increases are too high, so he will see that the rise is at least halved.

However that will see entitlements cut in some areas. Those cuts include stopping payments in cases of self harm or suicide, and where criminal behaviour is involved.

"These changes are necessary because ACC's claim costs have risen by 57 per cent and its unfunded liabilities have grown from $4 billion to $13b in just four years," Dr Smith said.

The steepest levy hikes are for drivers of large motorcycles.

All motorcycles currently pay $252.69 in levies. Under the changes, while bikes under 125CC face only an increase of a few dollars, larger motorcycles will pay far heftier amounts.

For example: 126-600cc: increases from $252.69 to $511.43 (102 per cent increase).

601 plus cc: increases from $252.69 to $745.77.

Mopeds - which currently pay just $59 in ACC charges - will instead be classed with small motorcycles of 125 CC or less and pay $257.58 in license fees and petrol levies.

Dr Smith said motorcyclists were 16 times more likely than car drivers to be involved in accidents yet car owners were currently subsidising their ACC bills by $70 each.

The Government is also considering 'no claims' bonuses, experience rates, and lower levies for those with safer vehicles.

"Our objective is to secure the long-term future of ACC as an efficient and fair 24/7, no-fault insurance scheme for all New Zealanders.

"The changes to the law will not reduce the income compensation payments to any existing claimants but future claimants will receive lesser amounts in some circumstances."

Other key changes included:

* reversing 2008 income compensation extensions covering casuals, part-timers, non-earners and abatements for holiday pay;

* reversing vocational rehabilitation changes;

* introducing a 6 per cent hearing loss threshold;

* reversing entitlements for wilfully self-inflicted injury and suicide;

* further restricting entitlements for criminals;

* allowing incentives for employers and vehicles;

* requiring more open reporting of ACC liabilities;

* And the previously announced decision to extend the date ACC had to be fully funded by from 2014 to 2019.

ACC recommended increases in the work account levy from $1.31 to $1.89 per $100; in the earners account from $1.51 to $2.48 per $100. Also it said the motor vehicle account levy should go up to $417.28 from $287.

- NZPA, NZ Herald Staff, NEWSTALK ZB