The Government agreed to ACC's recommendations for a substantial reduction in the Earners' levy and Work levy, to take effect from the beginning of the financial year on 1 April 2014.
In New Zealand all employees and motor vehicle users are required to pay ACC levies to cover the costs of injuries that happen outside the workplace. Work related injuries are also covered by ACC and are funded by a workplace levy that is paid by employers and self-employed people.
According to ACC Minister Judith Collins, “Workers and employers will be paying less thanks to the (Accident Compensation) Corporation’s astute financial management, outstanding investment performance and dedication to effective rehabilitation."
"The average New Zealand household can expect to keep just over $200 each year. Small businesses will also be around $180 better off annually and larger employers will receive, on average, a $6000 reduction.”
New Earners' levy rates starting from the 1 April 2014 tax year are $1.45 (incl. GST) per $100 of liable earnings. Liable earnings are capped at $116,089 per year.