ACC almost fully funded now

Judith Collins announced:

Two ACC accounts – the Earners Account and the Work Account – are now fully funded and the Motor Vehicle Account is expected to be fully funded soon.

Ms Collins says ACC’s progress to date has allowed this Government to signal $300 million worth of levy cuts for taxpayers for 2014/15.

This is really pleasing. Once all ACC accounts are fully funded, we won’t have a huge unfunded liability dependent on future levypayers.

What is good about getting to a fully funded state earlier rather than later, is that there may be room for significant levy drops for 2015/16 as the levies will no longer be needed to move ACC from pay as you go to fully funded. They’ll still need to meet the total costs of accidents that occur each year – but as I said I suspect further levy drops will be possible – which is good for employees, employers and motorists.