Nobody should be under any illusions about ACC. The Government inherited a mess. ACC liabilities have blown out to now be almost $24 billion. This is $13 billion more than its assets. This makes ACC unsustainable and puts core ACC entitlements at risk.

The Board of ACC has recommended huge increases in levies to get the scheme out of the mess that the last Government let it get into. The Government believes that the recommended increases are too high for New Zealanders to pay. There will be some increases, but not to the extent that the ACC Board has suggested.

The Government is working to make the scheme more affordable by tightening up on some entitlements. Changes that are proposed include:

1. Reversing 2008 income compensation extensions
2. Reversing entitlements for wilfully self-inflicted injury and suicide
3. Reducing entitlements for criminals
4. Allowing safety incentives for employers and vehicles
5. Require more open reporting of ACC's liabilities

There will be no change to entitlements for current claimants.

You can have your say at: www.acc.co.nz/consultation