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Farmers expect to save substantially on lower ACC levies after 'improving safety record'

Rural News
Farmers expect to save substantially on lower ACC levies after 'improving safety record'

Content supplied by Federated Farmers

Farmers are delighted the Government has confirmed ACC levies for 2014/15, which will see between 21 and 29 percent, shaved off work levy rates for farming ‘risk groups’.

This reflects an improving safety record on-farm and should go lower as this trend continues.

"While farmers may work in one of the highest risk groups, we are finally seeing our improving safety record translate into the levies paid by pastoral farmers," says Katie Milne, Federated Farmers ACC spokesperson.

"If there is ever an advertisement for why good safety is good for business then this is it. Work levy rates for pastoral farming categories in 2014/15 are being shaved between 21 and as high as 29 percent."

"From the macro sense this will save all businesses, not just farming ones, $151 million this financial year in the Work Levy alone.  As farmers are self-employed they will get a share of what is a $151 million safety dividend."

"Employees will also be paying $236 million less in the Earners’ Levy too."

"While Federated Farmers is very happy with this that comes as a result of ACC consultation, one thing we will be watching out for is to ensure any cut to levies does not shift the goal posts of entitlement when farmers need to claim."

"We trust the levy cuts reflect a far more efficient and focused ACC, rather than chalking up accidental injuries as part of the ‘wear and tear’ of being alive."

"Given what Minister Collins said earlier in the week, we remain very hopeful that a safer vehicle fleet including farm road going farm vehicles, will see a cut next year in the motor vehicle account average levy."

"Overall this is a very good result for employers and employees alike but we now wonder if the time has come to give ACC its political independence from levy setting, much like the Reserve Bank has with the Official Cash Rate," Mrs Milne concluded.

The table below shows the finalised 2014/15 Work Levy rates (current portion) for employers and self-employed people compared to last year’s rates payable on each $100 of wages or earnings from self-employment (all rates shown exclude GST):

Farming occupations Previous Levy
(2013/14)
 New Levy
(2014/15)
Grain growing $1.40  $1.00
Crop growing (not elsewhere classified) $1.40  $1.00
Grain (and sheep or beef) $2.56  $1.94
Sheep/Beef $2.56  $1.93
Sheep $2.56  $1.93
Beef $2.55  $1.93
Beekeeping $2.61  $2.01
Dairy $2.61  $2.07
Deer $2.61  $2.01
Pig $2.61  $2.01
Other livestock $2.62  $2.02
Shearing $4.26  $3.20

 

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