Source: BusinessNZ
Better claims management and more transparent levy-setting are needed to return ACC Accounts to financial health, BusinessNZ says.
BusinessNZ’s submission on ACC’s levy-setting for 2025-28 notes that some ACC Accounts are currently underfunded, a situation which will lead to unjustified pressure on future levy payers.
BusinessNZ Chief Executive Katherine Rich says ACC needs to be adequately resourced to ensure injured people receive rapid and cost-effective treatment and rehabilitation where required while at the same time being responsive to levy payers to minimise overall costs.
“While we understand why ACC is proposing levy increases across the various Accounts, many levy payers will not welcome the proposed increases – which will add further pressure on businesses, workers and motor vehicle owners during challenging economic times and cost-of-living pressures.
“The Government is responding to the economic challenge by seeking to restrain core Crown operating spending and has called on local government to focus on ‘doing the basics brilliantly.’ We believe ACC should do likewise.”
Mrs Rich says there’s concern at the fact that the Earners Account is currently only 90% funded, with a shortfall of $1.6 billion, and given proposed levy rates, will fall to only 67% funded in 10 years.
“ACC legislation requires all Accounts to be fully funded to ensure they can meet the lifetime cost of current claims. We believe this legal requirement is currently not being met.
“There is also concern at the longer-term trend of claim volumes rising faster than population growth.
“We believe ACC should proactively improve systems for accepting, managing and monitoring claims, and should manage all Accounts transparently, without cross-subsidies.
“It is important that the businesses, workers and vehicle owners contributing levies to the ACC Scheme have confidence that the Scheme is being funded and managed according to its statutory requirements,” Mrs Rich said.
The BusinessNZ Network including BusinessNZ, EMA, Business Central, Business Canterbury and Business South, represents and provides services to thousands of businesses, small and large, throughout New Zealand.
