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Lower ACC levies welcome

BusinessNZ has welcomed the prospect of lower ACC levies.

 ACC consultation documents show employer, employee and motor vehicle levies are set for reductions of 15 – 17 percent next year.

 BusinessNZ Chief Executive Phil O’Reilly says better management of the ACC scheme, based on sound insurance principles, is starting to deliver lower premiums.

Experience rating, where employer levies can be reduced in response to a safe work history, is helping to keep the premiums down.

The work and earners accounts are now fully funded and the position of the motor vehicle account is starting to improve.

 A proposal to introduce risk rating for cars based on crash results is also a positive move, as safety features in newer cars can significantly reduce the number and severity of road injuries.

 But the continued significant cross-subsidisation in the motor vehicle account is still a concern, Mr O’Reilly says.

“Car owners are still significantly subsidising motorcycle owners.

“Overall transparency could be improved, with an independent body preferable to the current political levy-setting process.

“ACC has the potential to be still better governed and managed, to further reduce accident numbers and improve rehabilitation outcomes.”

 

 

 

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4th June 2025

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