ACC changes: Pay more for less
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New Zealanders will have to pay more to get less under proposed ACC changes announced today.
An average worker will have to pay $300 a year more if the Government passes legislation to cut entitlements.
Employee levies are currently $1.
But if its amendment bill does not pass, the increase in levies advanced by ACC will be even higher. That will increase to $2.5110 per $100 of liable earnings.4889 if Parliament doesn’t accept it.1778 under the amendment or $2.47 per $100 (from $1.
Employers will face an increase of $1.89 if it does not.31) if the legislation passes or $1.28 a year in petrol tax and registration fees to $317.
The cost of owning a motor vehicle will increase by $30.28 without.28 with the legislative changes or $417.
The Injury Prevention, Rehabilitation and Compensation Amendment Bill includes a number of cuts in entitlements which ACC Minister Nick Smith said were necessary to reduce ACC’s liability.
The increases to the employer and employee level should be in force by April.
Many of the changes remove entitlements established by Labour last year.
The changes would apply to new claimants – current income compensation would not be cut, he said.
People, and their families, who commit suicide or acts of self-harm, will no longer be eligible for compensation.
Those included compensation for casual and part-time workers which would be calculated to reflect their earnings over the past year rather than past four weeks to prevent them earning more on ACC than when working, reducing compensation for loss of earnings for non-earners from 100 percent to 80 and holiday pay being taken as earnings and weekly ACC compensation not be paid simultaneously.
He would not say whether that was an incentive for people contemplating suicide.
Dr Smith said if someone with a family committed suicide the family could have been given almost $1 million in compensation over time. .
Suicide was tragic but not an accident, he said.
Compensation will also be automatically withdrawn for anyone who convicted of committing a serious crime and imprisoned.
Prisoners currently receive medical treatment and rehabilitation under ACC as part of their care.
Dr Smith said the changes were aimed at cutting ACC’s liabilities by $2 billion and would secure the long-term future of ACC.
“I’m actually reasonably confident that the package that we have announced today is what’s going to be required to fix it (ACC).”