ACC levy reductions become law

ACC levy reductions worth more than half a billion dollars a year to workers and businesses have been signed into law by Governor-General Sir Jerry Mateparae.

As announced last year, ACC’s $3.5 billion surplus in 2010/11 and improvements in rehabilitation rates have enabled the reduction in levies. The reductions are predicted to save households $340 million a year and businesses $247 million a year.

The levy on wage and salary earners is reduced by 17 percent – or $170 a year for someone on the average wage. The levy on employers and the self-employed is reduced by 22 percent – a saving of $1,120 a year for the average small business with seven employees.

The Earners’ Account Levy (paid by wage and salary earners) will decrease from $2.04 to $1.70 (including GST) and the average Work Account Levy (paid by employers and the self employed) will decrease from $1.47 to $1.15 (excluding GST) per $100 of liable earnings from 1 April 2012. Work levies for individual companies depend on their industry classification and experience rating.