Media release from ACC minister Nick Smith

ACC Minister Nick Smith today welcomed the report back to Parliament on the ACC Reform Bill saying the recommendations will help secure the long-term future of the accident compensation scheme.

"The Transport and Industrial Relations Committee has endorsed the reforms in this Bill and recommended only minor changes and clarifications in response to public submissions," Dr Smith said.  

"With ACC claim costs having risen 57% in the past four years - five times the rate of inflation - and the unfunded liabilities having grown from $4 billion to $13 billion, changing the law is necessary to ensure ACC is affordable, sustainable and fair for claimants and levy payers."  

Key changes to ACC in the Bill include:

• Extending full funding date from 2014 to 2019
• Reversing 2008 income compensation extensions covering casuals, part-timers, non-earners and abatements for holiday pay
• Reversing vocational rehabilitation changes
• Introducing 6% hearing loss threshold
• Reversing entitlements for wilfully self-inflicted injury and suicide
• Strengthening disentitlements for criminals
• Enabling safety incentives for employers and vehicle owners
• Requiring far more open reporting on ACC's liabilities

"The levy increases proposed by ACC's Board last year under the current law are too much for New Zealanders to pay," Dr Smith said. "The changes the Government is making will more than halve these increases easing the impact on households, workers, businesses and motorists.  

"This legislative reform is part of the Government's objective to secure the long-term future of ACC as an efficient and fair 24/7, no fault insurance scheme for all New Zealanders."