Covid 19 coronavirus: ACC levies won't be hiked until at least 2022 as New Zealand continues to battle virus

The Government has promised not to hike ACC levies for businesses and motorists until at least 2022, in a bid to cushion the Covid-19 blow for New Zealanders.

ACC Minister Iain Lees-Galloway said this was a "prudent decision," given the uncertain nature of New Zealand's economic outlook.

"It provides some certainty to businesses and other levy payers and gives ACC more time to reliably assess the impact of Covid-19 on its finances."

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Work and earners' levies will remain at the current levels until March 31, 2022; motor vehicle levies won't be adjusted until June 30 the same year.

Lees-Galloway also announced that ACC would delay the invoices it usually sends out in early July until October to give businesses more time to make those payments.

Other invoices issued this year by ACC will also be on hold for three months.

"New Zealanders and businesses are facing unprecedented financial pressures as a result of Covid-19," he said in a statement this afternoon.

"We're taking practical steps to support levy payers throughout these difficult times, while also safeguarding the ACC scheme."

He also took a swipe at the previous National government which he said increased levies during the global financial crisis "only to find they were too high in the following years".

This Government's approach, he said, was one of caution which aimed to ensure that unnecessary pressure was not put on businesses.

Meanwhile, the funding target for ACC's Levied Accounts has been changed to reflect the more accurate costs of accidents, as well as minimise long-term impacts on levy payers.

Lees-Galloway said ACC's funding target of 105 per cent solvency was more suited to a private insurance company.

As a result, this will be lowered to 100 per cent solvency, which he said was appropriate given ACC's "unique position as a mandatory, sole provider and Government-supported social insurance scheme".