Our latest ACC battle
Use of Money Interest
Are you ready for the battle of the year?
It’s the little guy vs the big guy, the underdog vs the champ, the peewees vs the giants – yes, we’re taking on the biggest review case we’ve ever had against ACC – a case that if we win, will cost ACC upwards of $20 million dollars – now say that as if you were a chaser on The Chase...
Here’s the thing – ACC have always done what ACC have done. Not an issue right? Yeah – nah, it is an issue actually because late last year, ACC said they shouldn’t have done what they have always done, did a 360 faster than the Tasmanian Devil and swept the carpet out from under us like a repo agent on a mission.
ACC levies
The story – a long time ago, in a galaxy far, far away (Wellington to be exact), ACC started giving back money to clients where they had been overcharged on levies. On top of this, they gave back the interest that they had earned from using the overcharged money – seems fair doesn’t it? They’ve been doing this for the last 15+ years so it’s what we’ve come to know and get used to – after all, who knows ACC’s legislation better than ACC?
Apparently, ACC doesn’t know it’s own legislation as well as it thought it did. The whole debacle started when ACC decided it needed a new customer system – so about 5 years ago. As part of the system, they looked at the way the system applies the legislation to its own internal processes (as a side note, they didn’t do this when they replaced the system in 2005 – just sayin’) and discovered after getting legal advice that they didn’t have to pay interest in certain circumstances.
They kind of let it slide for a bit, embedding the new system, getting staff used to it, ironing out the very expensive kinks and then, last year, paid self-employed customers back their first year of levies (another bit of legislation previously read wrong) and paid back all provisional invoices where no final invoice had been issued (this was apparently the fault of the previous system). All up, this cost ACC approx. $100m….
On this episode of ACC gone wrong …… Manage Group tells all. They’ve learned some new phrases: “Ultra Vires” and “Estoppel”, both of which are being used by both teams in last week’s battle and Manage Groups superpower word for the week: “Unconscionable”.
So in the grand finale on Friday 19 June – Manage Group take on the might of ACC in an epic two hour non televised (but recorded) fight for the little guys, the underdogs, and the peewees. Stay tuned for another exciting episode in approx. 1 month when the reviewer delivers their verdict…….Best wishes for the coming month.
If you believe any of the following common issues may apply to you, get in touch with Sue: sue@managecompany.co.nz 027 210 4918.
Paying too much in ACC levies?
Owed interest?
On an incorrect levy code?
Sue Walton, Manager - ManageACC
sue@managecompany.co.nz 027 210 4918
