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ACC levy bonuses and penalties for employers Changes to charges and levies

#1 User is offline   neddy 

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Posted 14 July 2010 - 03:52 PM

ACC levy bonuses and penalties for employers
NZPA July 14, 2010, 3:26 pm



ACC levy bonuses and penalties for employers


Businesses will receive up to 50 percent discounts or penalties on their ACC workplace levies from April next year, depending on their claims records, the Government has announced.

ACC Minister Nick Smith said today the changes were being made to provide stronger incentives to improve workplace safety and to make levies fairer.

There would be consultation with employer and employee groups on the details of his proposals over the next few months.

"The Government's ambition with these changes is to reward excellence in workplace safety and achieve a stronger focus on reducing injuries at work," he said.

"New Zealand's workplace safety does not compare well internationally with more than one worker killed and another 600 injured each week."

Dr Smith said employers paying more than $10,000 a year in ACC workplace levies would be eligible for a discount, or a penalty, of up to 50 percent based on their claims history over the previous three years.

That covered about 5000 employers with 690,000 employees.

For smaller businesses there would be a simple system of no-claims bonuses and high-claim loadings.

The proposal is that if no claim for weekly income compensation has been lodged in the preceding three years, the employer will receive a 10 percent no-claim bonus on their levies.

Penalties will apply where there has been more than four weekly income compensation claims in the last three years.

Dr Smith said it was expected that 220,000 small businesses would receive a discount while about 1000 would pay a high-claim loading on their levies.

He said the current system of averaging out levy payments meant businesses with good workplace safety were carrying the cost of those that were less safe.

"This detracts from the incentives for improving safety," he said.

"The new system of accident experience rating will reward those businesses that have safer work and return to work practices."

Dr Smith said he expected that businesses hit with penalty payments on their levies would quickly want to take up ACC's safety programmes and improve their record.

ACC chief executive Jan Wright, who was with Dr Smith at a press conference today, said the savings for big companies would be significant.

She gave as an example a big meatworks which paid levies of about $1 million each year. A 50 percent discount on that would make a real difference.

Accident experience rating was provided for in the ACC legislation from 1972 but it was repealed in 2000 by the previous government.
The statutory provision for it to be reinstated was in legislation passed in February this year and Dr Smith said officials were "fast at work on the detailed regulations and consultations to implement the new system on April 1, 2011".
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#2 User is offline   MINI 

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Posted 14 July 2010 - 04:51 PM

This only pushes the employers to get rid of employees, who may still be usefully employed because of knowledge factor, but not as fast because of injury.

And they are liers, it was under the Nat regime that govt accred employers could act as they liked.

This will make no difference to the likes of them.

Mini
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#3 User is offline   doppelganger 

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Posted 14 July 2010 - 05:02 PM

this is no difference to the legislation and whats being in process since the mid 90's

Looks like he is talking through a hole in his head or is covering up some illegal activity of ACC senior management.

I think some companies might be a bit pissed off when they have previously accepted the dioscount and now have to start again.

Next years levies consultation start soon.
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#4 User is offline   Gazza16a 

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Posted 14 July 2010 - 09:00 PM

View PostMINI, on Jul 14 2010, 04:51 PM, said:

This only pushes the employers to get rid of employees, who may still be usefully employed because of knowledge factor, but not as fast because of injury.

And they are liers, it was under the Nat regime that govt accred employers could act as they liked.

This will make no difference to the likes of them.

Mini


Hi

This is very interesting.

My (work related accident) didn't happen at work.
It seems that I have suffered a Prolapsed Disc while I was in bed.
ACC resolved the situation by sending a letter
to my employer saying it was not a work related injury.

It seems really strange that I still have the same injury. Still take the
same meds. And the BOSS
gets away scot free.

My question is: Who are they looking after,

Gazza

Dopel Sorry about multi posting
But if I step on your toe let me know.
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