"Who's next" proved right

[Murray]

This mornings hearld

"Struggling workers and businesses could have benefited from almost half a billion dollars in ACC levy cuts this year if the Government hadn't disregarded Ministry of Business Innovation and Employment advice, it has emerged.

Policy advice from the ministry released this week shows it recommended cutting the workers' and earners' levies by 17 per cent for the 2013-2014 year.

Labour says the Government's decision to disregard that advice and ACC's own recommendation to cut levies by 12 per cent was driven by its political goal of returning to surplus by 2014-2015.

Late last year ACC Minister Judith Collins announced the Government would not cut ACC levies for workers and businesses as recommended by the ACC board. ACC's 12 per cent cuts would have reduced levy income by about $330 million a year thereby undermining the Government's goal of returning to surplus.

But Ms Collins said it was decided not to cut levies because the Government was mindful of economic uncertainty and it wanted to have confidence that levy reductions were stable and sustainable.

However, Ministry of Business Innovation and Employment (Mbie) advice on ACC levies, which was released this week, recommended even deeper 17 per cent cuts that would have saved workers and businesses $477 million a year.

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10859851

Goes on to state a worker on an average wage would have benefitted from the cuts by approx $125 per year - This at least would have helped pay the exorbitant acc increases for bikers!!

[jasonu]

$125 per year is about $2.40 a week, not even enough for a glass of beer in the local boozer and I would think not enough to make any difference to pretty much anyone.

[Murray]

$125 per year is about $2.40 a week, not even enough for a glass of beer in the local boozer and I would think not enough to make any difference to pretty much anyone.

Love the logic - so the increase in acc levys on motorcycles was just enough to buy a glass of beer at the local boozer ($6-$8) a week so thats all good. Not enough to make a differnce to anyone.

Personally i would love to pay $125 less acc a year as it would make the increased levy on my bike a bit less painful.

[jasonu]

Love the logic - so the increase in acc levys on motorcycles was just enough to buy a glass of beer at the local boozer ($6-$8) a week so thats all good. Not enough to make a differnce to anyone.

Personally i would love to pay $125 less acc a year as it would make the increased levy on my bike a bit less painful.

Except the levy in question is $125 per YEAR. Not a lot really.
I am with you though, any less of my cash to the government is OK with me but my OP still stands. $2.40 a week aint much.

[p.dath]

In the earlier years of ACC there was considerable instability as political party after political party slashed and then increased the rates. It cause significant variations in the fund.

I'd prefer to have a longer term stable cost based on a long term average, than a knee jerk change up and down every year or so.

[Oakie]

I'd prefer to have a longer term stable cost based on a long term average, and a knee jerk change up and down every year or so.

What he said.

[p.dath]

How much would just be going into the consolodated fund I wonder?

None of it. It goes to ACC.

[Jantar]

None of it. It goes to ACC.

Not true. ACC pays a large dividend to the government each year based on the amount of profit it makes during the year.

[Flip]

We should have held another protest.

Aper-bloody-thetic bunch of buggers we all are.

At least we would not have some of our own (motonz) standing on a ladder pissing on us and saying its raining.

[p.dath]

Not true. ACC pays a large dividend to the government each year based on the amount of profit it makes during the year.

Although it is all the "people's money", do the proceeds of the ACC investments not go straight back into the ACC fund? I can't find any references to suggest it goes anywhere but back into the fund.

[Jantar]

Although it is all the "people's money", do the proceeds of the ACC investments not go straight back into the ACC fund? I can't find any references to suggest it goes anywhere but back into the fund.

The way I understand it all levies, investment dividends, investment profits etc less all operating costs and ACC payouts are taken by ACC as earnings (ebidat to those who understand that term). ACC is tax exempt with the exception of GST, but in lieu of paying tax, ACC makes a dividend payout based on its profit.

[gwigs]

We should have held another protest.

Aper-bloody-thetic bunch of buggers we all are.

At least we would not have some of our own (motonz) standing on a ladder pissing on us and saying its raining.

Yeah I,d be up for another mass ride on Wellington,the bikoi was a fantastic experience.......Soo many bikes..:scooter:

[Pedrostt500]

Get a levey cut as an Election year Bribe.

[mashman]

$125 per year is about $2.40 a week, not even enough for a glass of beer in the local boozer and I would think not enough to make any difference to pretty much anyone.

So no problem to keep cutting down 1 glass of beer a month for the next 5 years? I'm sure TPTB justify their reasons for raising ACC levies in a similar way. It's only a pint of milk and a loaf of bread for the month for the workers account and bikers should be able to survive 1 less pint per month. Yet they return a billion(s) in profit.


Get a levy cut as an Election year Bribe.

This is true. Didn't they forecast a drop in levies for this year in their reports a couple of years ago?