Concerns over rehabilitation rates and costs prompt review.
The New Zealand government has announced an independent review of the Accident Compensation Corporation (ACC) due to declining rehabilitation rates and increasing costs. ACC Minister Matt Doocey expressed concern about these issues, stating that they have been a decade-long problem. The review will focus on claims management and whether ACC's interventions are effective in supporting accident claimants' return to independence.
To address the rising costs, the earners and business levy is being increased by up to 5% per year for three years. This increase translates to an additional $42 for individuals on a median full-time wage of $70,000 per year or $80c per week over three years. Motor vehicle owners' levies will also be increased by 5% plus inflation adjustment each year.
The review and efforts to strengthen performance monitoring aim to improve health outcomes and reduce long-term dependency among accident claimants. The levy changes are set to take effect before April 2025 for earners and work accounts, and July 2025 for motor vehicle account holders. More information on the new rates can be found on the ACC website.