At a time of government ‘fat trimming’ it’s nice to hear the word surplus. ACC has made a miraculous turnaround from several years ago, as a result of reduced management costs and drastic improvements in rehabilitation rates thus also resulting in 20% less people on long-term compensation.
Last year a $3.5 billion dollar surplus was announced and now reductions in ACC levies have been signed into law, saving households $340m a year and businesses $247m a year. As of 1 April workers’ pockets have been happier and businesses should be experiencing improved cash flow.
The levy on wage and salary earners has reduced by 17% – or $170 a year (if you’re an average wage earner). The levy on employers and the self-employed has reduced by 22%, 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) has decreased from $2.04 to $1.70 (incl. GST) and the average Work Account Levy (paid by employers and the self employed) decreased from $1.47 to $1.15 (excl. GST) per $100 of liable earnings. Work levies for individual companies depend on their industry classification and experience rating.
*Wilco Winter – Monteck Group