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After inheriting an absolute mess after the 2008 election, ACC Minister Nick Smith announced last week there may be scope for ACC levies to reduce later this year.

This is good news for hardworking business owners and wage earners after three years of struggle to fix ACC’s books.

The Government appreciates that households and businesses are under a lot of financial pressure.  The plan  is to be able to pass on the benefits of ACC’s improved financial performance with levy reductions for both employees and employers.

This turnaround in ACC’s finances is from improved rehabilitation, reduced claim numbers and better management of costs.

The National Government has focused on getting better value for taxpayer dollars and it is paying off across the board.

More than one person is killed and another 600 injured at work each week in New Zealand.

That’s an unacceptable set of statistics that have to change.  That’s why the Government has moved to experience rating for workplaces.

The averaged ACC levy system has meant businesses with good workplace safety have been carrying the cost of others that are less safe. This new system of experience rating is about better aligning ACC levies with risk and rewarding employers with good safety records.

Experience rating is also about providing incentives for businesses to focus on worker rehabilitation. There is clear evidence that getting workers back into the workplace on limited duties on a part-time basis assists the recovery. Employers will now have a real financial incentive in supporting rehabilitation.

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