Right now ACC is consulting on setting the 2012/13 levy rates. Legislation requires us to consult levy payers about any changes we want to make to rates and regulations before we take our recommendations to the Minister for ACC. You have the opportunity to have a say on our proposed rates for the coming year by making a submission during our consultation process.
We set separate levies to cover the costs of work-related personal injuries, non-work related personal injuries, and personal injuries involving moving motor vehicles on public roads. These levies are paid by employers, self-employed people, employees and motor vehicle users.
WHAT ARE THE PROPOSED LEVIES?
We’ve made very positive progress in the last two years towards ensuring the financial sustainability of the Scheme, and this is reflected in the levy rates that we are proposing.
For the 2012/13 levy year we are proposing the following rates (GST exclusive):
- a 22% reduction in the combined average work levy
- a 17% reduction in the combined earners’ levy
- no change in the average motor vehicle levy
Who pays Levy rate Current 2011/12 Proposed 2012/13 Proposed change
Cover for work injuries paid by self-employed* and employers (invoiced directly by ACC) Combined average^ levy rate per $100 liable earnings $1.47 $1.15 down 32c
(-22%)
Cover for non-work injuries paid by employees (through PAYE) and self-employed Combined earners’ levy rate per $100 liable earnings $1.73 $1.44 down 29c
(-17%)
Cover for motor vehicle injuries paid by motorists (through licensing fees & petrol levy) Combined average^ levy per vehicle $334.52 $334.52 no change
* Self-employed and non-PAYE shareholders also pay the non-work claims levy
^ These are average rates. Individual rates for industry groups and motor vehicle classes may increase or decrease.
CONSULTATION DISCUSSION DOCUMENTS
Our levy proposals are detailed in three documents, one each for:
- Work levies, which are paid by employers, self-employed people and private domestic workers and fund cover for work-related injuries
- Earners’ levies, which are paid by everyone in the paid workforce and fund cover for non-work-related injuries
- Motor vehicle levies, which are paid by all motorists and fund cover for injuries involving moving motor vehicles on public roads.
These consultation documents also provide proposals for the changes relating to
- Levy Risk Groups, levy classification units and capping levels
- Changes to workplace incentive programmes
- Experience Rating
- Accredited Employer Programme discounts and fees
- Minimum and maximum liable earnings limits
There is also an ‘Introduction’ document which provides information about ACC, how the consultation process works and includes a copy of ACC’s Funding Policy.
To get a copy of any of these documents, visit www.acc.co.nz/levyconsultation, call 0800 222 728, or send an email with your request to levyconsultation@acc.co.nz
A copy of the actuarial advice upon which we’ve based our proposals is available on request.
MAKING A SUBMISSION
We welcome your feedback on the proposed levies and other ideas covered in these documents - whether you agree or disagree with our proposals and if you have any ideas or suggestions for improvement.
You can send your submission (which must include your name, address and contact phone number) in any of the following ways:
By post to: Levy Consultation
ACC
PO Box 242
Wellington 6140
By fax to: 04 816 5581
By email to: levyconsultation@acc.co.nz
Deadline for submissions: 5.00 pm, 15 August 2011
Please note that ACC is subject to the Official Information Act 1982, so your submission may be available to people seeking information under the Act.