ACC plans levy increases to cover rising injury costs

Summarised by Centrist

The Accident Compensation Corporation (ACC) is proposing levy hikes to cover increasing injury and rehabilitation costs. 

ACC’s CEO Megan Main acknowledges the strain this may place on people struggling with a cost of living crisis, but says it’s necessary to ensure future generations aren’t burdened by today’s claims. 

Motor vehicle levies are proposed to rise by 7.5% and employer and worker levies by 4.5% each year for the next three years. This means that motor vehicle levies would go up from $113.94 to $141.69 over three years, while earners’ levies would increase to $1.59 per $100 wages by 2027/28. 

Motorcyclists, particularly those with more powerful bikes, would see a 33% rise in levies, but discounts are available for riders who complete safety courses. Electric vehicle subsidies would also end.

Additionally, ballet dancers may also face higher levies due to their higher injury risk.

A month-long public consultation will conclude on 9 October. By December, a final decision will be made by the government.

Read more over at RNZ