ACC higher on earnings, lower for vehicles

Motorists are the winners while the self-employed and all earners are the losers in next year's ACC levies, announced by ACC Minister Ruth Dyson yesterday.

The average annual vehicle levy will drop about 8 per cent, to $190, effective from July 1.

However, the self-employed will be hit with a 10 per cent increase, taking their levies to $3.54 for every $100 of earnings.

The employers' levy remains the same but the levy on all earners increases nearly 9 per cent, to $1.16 for every $100 of earnings.

Levy increases reflected the rising cost of healthcare, particularly for long-term claimants, Ms Dyson said.

"For self-employed, their injury costs are rising while ... their leviable income has been static," she said.

"If you have a flat pool of earnings to meet rising injury costs, it's inevitable that levy rates have to rise."

But National MP Katherine Rich accused the Government of giving the self-employed "another kick in the guts".

"The minister must see the irony in her explanation for the increase, claiming that it is because the incomes of self-employed have shown no improvement in the past year," she said.

"Small businesses have no choice but to accept the continued levy hikes given the Government's monopoly on ACC cover."

All levies are exclusive of GST, and the earnings levies are effective from April 1.

- NZPA