ACC to refund $100m to businesses

ACC will refund more than 300,000 business customers $100 million plus interest after overcharging them for 15 years.

Between 2002 and March 2017, when the error was discovered, the stateowned workplace insurer overcharged about 106,000 people in the first year of being self-employed by a total of $34 million. Over the same period, 200,000 businesses were overcharged $64m on provisional invoices.

The refunds for selfemployed people will average about $340 excluding GST and $415 for firms’ provisional payments.

ACC uncovered the issue when preparing to introduce a new levy system and has started tracking down customers so it can repay them.

Phil Riley, head of business customer service delivery, said ACC regretted and apologised for the mistake and urged people to update their contact details to help the process.

“We expect it may take until April next year to complete the refund process,” he said. “We will begin refunding customers this month.”

ACC has taken a provision for the refunds in its 2018 annual accounts which are due to be tabled in Parliament next week.

Riley said the refund had been factored into its latest levy consultation and accounted for a 1 cent increase in the work account, where a reduction is proposed, and less than 1 cent for the earners’ account, where a 2.5 per cent increase is proposed.

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