ACC's claim costs have risen by 57% in the past four years, and its unfunded liabilities grown to $13 billion from $4 billion, he said, prompting its board to put forward hefty levy increases for next year.
Smith said such increases are too much for New Zealanders to pay and that "reform of ACC requires a difficult balancing of the rights of levy payers with that of claimants."
"The changes to the law will not reduce the income compensation payments to any existing claimants but future claimants will receive lesser amounts in some circumstances," Smith said. "Our objective is to secure the long-term future of ACC as an efficient and fair 24/7, no fault insurance scheme for all New Zealanders."
The law changes are part of National's wider reform of ACC that began with changes to the board in March, a stock-take in August and other regulatory and operational changes.
Submissions are to be invited on the proposed law changes, key components of which include:
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