New Zealand employers could soon reap the benefits of the country’s reduction in accident compensation claims, improved rehabilitation services and increased investment returns, with the Accident Compensation Corporation (ACC) proposing cuts to levies.

The ACC says a “surprising” turnaround from successive deficits of $NZ2.4 billion ($1.8 billion) in 2007/08 and $NZ4.8 billion ($3.7 billion) in 2008/09 to a $NZ2.5 billion ($1.9 billion) surplus for the past two years has led to the offer.

Chairman John Judge says it’s important to note that the ACC has been able to achieve these results while maintaining its core purpose to support injured people in returning to work.

“This is a significant turnaround driven by the improved rehabilitation of injured New Zealanders, lower claims rates and better investment returns,” he said.

The ACC work account is now approaching 100% solvency, which is closer to a proper level of funding based on the mid-range of the account of 117.5%, and means the board can allow for a reduction in levies.

It could see a 22% drop in the average levy, down to $NZ1.15 (90 cents) for every $NZ100 ($78) of liable earnings for 2012/13.

Other proposed savings include a 17% reduction for the earners account. While the motor account “still has some way to go” before it will see any changes, the ACC hopes to reduce it over the next three to five years as its reserves increase.

“We have to make sure we can continue to meet the future cost of claims as well as having a sufficient financial buffer which is important to enable us to fund an increase in claims as a result of events like the Christchurch earthquake,” Mr Judge said.

New Zealanders have until August 15 to make a submission on the proposed changes.