Government's ACC levy increases ‘a needless kick in the guts'

11 December, 2009

The National-led Government announced large hikes in ACC levies this week that will cost the average worker nearly $200 more every year.

Workers on the average wage will pay an extra $150 a year in levies, while car registration costs will increase by $30 a year. Bikers will be hit even harder.

Kiwis will be hit again next year when the Government's legislation to cut ACC entitlements comes before Parliament.

EPMU national secretary Andrew Little says the size of the levy increases is unjustified.

"The Government is simply not being honest when it says ACC is making a loss and that these levy hikes and entitlement cuts are needed to get the scheme back on track.

"ACC is not in crisis, in fact last year it took in a billion dollars more revenue than it paid out in claims.

"The huge increases announced this week could be easily avoided if the Government funded ACC as a ‘pay-as-you-go' system like it does for health and education. The current full-funding model only makes sense if you're trying to prepare ACC for privatisation.

"For Kiwi families already struggling with falling wages and rising living costs these levy increases are a needless kick in the guts."