Bigger deficit for Christmas from the deficit buster. Expect higher ACC levies

The Government faces challenges in balancing reduced taxes with expenditure cuts to cover lost revenue, worsened by a deepening deficit and recession. ACC’s $7.2 billion deficit, driven by rising injury claims costs, prompts proposed levy hikes to prefund obligations. Despite calls to use general tax revenue, ACC argues for levies to prevent burdening future generations with legacy claims, highlighting the debate over full-funding for social security schemes like ACC and NZ Super.

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