Under the Injury Prevention, Rehabilitation, and Compensation Act 2001, the ACC Board has recommended to the Minister for ACC a number of changes to the levy rates for the 2005/06 levy year. The recommended rates reflect:
? submissions received as part of the public consultation process;
? the latest claims experience; and
? recent cost trends for each group of levy payers.
The ACC Board's recommendations are not binding on the Minister, who will obtain further advice from officials and actuaries before making recommendations to Cabinet.
Cabinet are expected to finalise the 2005/06 levy rates by December 2004.
The ACC Board levy recommendations are summarised as follows:
Who pays Levy Component Current 2004/05 average Recommended 2005/06average Recommended change
Employers Composite Levy(for every $100 of payroll) $1.21 $1.21 No change
? Which consists of a: Work levy Pre-1999 claims levy $0.91$0.30 $0.88$0.33


Self-employed people Composite Levy(for every $100 of earnings) $3.10 $3.22 +3.9%
? Which consists of a: Work levy Pre-1999 claims levy Non-work levy $1.73$0.30$1.07 $1.82$0.33$1.07



All earners - through Inland Revenue Non-work levy(for every $100 of earnings) $1.07 $1.07 No change
Motorists - through annual vehicle licensing fee and levy on petrol Motor vehicle levy(per motor vehicle) $197.50 $206.93 +4.8%
All rates are G.S.T. exclusive.
The levy rates recommended do not include provision for the amendments to legislation proposed in the Injury Prevention, Rehabilitation and Compensation Amendment Bill (No. 3) 2004.
ACC also recommended:
? to maintain the 129 levy risk groups (or pricing pools) for the employer and self-employed work levies and the 41 risk groups for the pre-1999 claims levy.
? that a small number of classifications be moved, or their description amended, to match changing market conditions and clarify coverage.
? that the petrol levy increases from 5.08 to 5.77 cents per litre.
? to increase the ACC component of the annual vehicle licensing fee by 5% for motorcycles (all other vehicle types maintained at their current rates).
Individual rates will be finalised and incorporated into draft Levy Regulations once the Government has set the average rates.
Copies of the detailed recommendations made to the Minister for ACC may be obtained by contacting ACC by telephone on 0800 ACC RATES (0800 222 728) or by email: consultation@acc.co.nz