Labour’s delayed shock and awe campaign has delivered again.
Again it is ACC but this time in the Earners Account. The Government has been advised by officials that they will need to grab an extra $1.337 billion off Earners to cover a shortfall.
Remember that Labour campaigned, cynically as it now turns out, on lowering ACC levies in the Earner account. All the time they must have been aware that in fact officials were crying poor.
A press release from Nick Smith outlines the magnitude of the Labour’s fiscal foolery and the continued revealing of their Orchestrated Obfuscation of Oberac.
Officials are recommending an increase in earners levies of $1.337 billion over the next three years to cover significant increased costs of the ACC Earners’ Account that funds non-work accidents involving employees.
“Department of Labour officials have advised the Government to increase the current ACC Earners Levy of $1.40 per $100 of earnings to $2.00 in 2009/10, $2.10 in 2010/11 and $2.20 in 2011/12 to cover the increased costs of the Earners’ Account.
“The cost increases identified by officials is being blamed on increases in the number of claims, lesser rates of rehabilitation resulting in increased duration of costs, increased medical and treatment costs, expansion of the schemes entitlements, and increases in treatment injury cover.
“This $1.337 billion is additional to the $1.253 billion required for the Non-Earners Account. The key differences are that the Earners’ Account is paid for by employee levies rather than the Government from general taxation, and the account does not require a cash injection in the current financial year.
“These are very significant cost increases for workers. A person on the average wage of $47,000 per year would pay an additional $282 in the next tax year or $5.40 per week, $329 in 10/11 or $6.33 per week, and $376 in 11/12 or $7.23 per week.
Labour simply must never be trusted with the Treasury Benches ever again.
Labour have just given every taxpayer a nice Not-Christmas present of a bill for $690 in order to bailout our “world class” ACC system.
Fuck you very much Labour.
