Govt foots $370m to freeze ACC
Work and earners’ levies, vehicle levies held until March and June 2022
Covid-hit Kiwi businesses have been thrown a lifeline by the Government, which yesterday confirmed it would foot the $370 million bill for freezing ACC levy hikes.
Prime Minister Jacinda Ardern confirmed there will not be any ACC levy hikes for at least two years to help businesses get back on their feet.
But it comes after Prime Minister Jacinda Ardern confirmed that the multibillion-dollar wage subsidy scheme would end, as planned, three weeks before the September 19 election and will not be extended.
And any economic respite in the form of a transtasman travel bubble still appears to be some way off.
Ardern told reporters yesterday that although progress was being made, no decisions have been made about the launch of the much-touted bubble.
But she did say: “We have to make sure we don’t sacrifice the freedoms we have by making unsafe decisions at our border.”
This comes as the Ministry of Health yesterday confirmed another Covid-19 case had been caught in isolation in Auckland.
The case is a man in his 20s who arrived from London on July 4, via Doha and Sydney. He was taken straight from Auckland Airport to the quarantine facility as he had symptoms of Covid-19 upon arrival.
There are 22 active Covid-19 cases in New Zealand, all of which are in border facilities across the country.
The new case brings the confirmed number of Covid-19 infections to 1184.
Alongside ACC Minister Iain LeesGalloway, Ardern promised not to raise ACC levies for businesses and motorists until at least 2022, in a bid to cushion the Covid-19 blow for New Zealanders.
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.
As well as this, ACC will delay sending out 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.
Ardern said the move would mean certainty for businesses, who now know they would be paying the same rate for two years. She said the scheme would cost the Government just over $370m, $278m to cover the loss this year, and $92.7m the next.
“We are taking a cautious approach in ensuring we do not add any pressure on businesses and New Zealanders where it’s not necessary.”
Although Act leader David Seymour said this was a good move, he said it raised questions as to why other costs, such as the minimum wage hike, had not been paused.
“If the Government understands that doing business is tough right now, and that it needs to reduce the burden faced by firms, it should be actively seeking to reduce other costs on the private sector.”
Meanwhile, Mike Heron, QC, has been appointed to lead a State Service Sector investigation into a massive Covid-19 privacy breach. The leaked information sent to media, which included details of Covid-19 patients such as where they were staying, was probably deliberate according to Health Minister Chris Hipkins.