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 2006/07 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 decide on the 2006/07 levy rates by December 2006.
The ACC Board levy recommendations are summarised as follows:

Who pays Levy component Current 2005/06 average Recommended 2006/07 average Proposed change
Employers* Combined Levy (for every $100 of payroll) $1.21 $1.21 Nochange
Which consists of a:
Work levy $0.88 $0.86
Pre-1999 claims levy $0.33 $0.35
Self-employed people* Combined Levy (for every $100 of earnings) $3.22 $3.54 +32c
Which consists of a:
Work levy $1.82 $2.03
Pre-1999 claims levy $0.33 $0.35
Non-work levy $1.07 $1.16
All earners - through Inland Revenue Non-work levy (for every $100 of earnings) $1.07 $1.16 +9c
Motorists - through annual vehicle licensing fee & levy on petrol Motor vehicle levy (per motor vehicle) $206.93 $190.00 -$16.93
* Note: These are average rates. Individual rates for industry groups may increase or decrease relative to the average rate movements based on recent experience.

All rates are G.S.T. exclusive


ACC also:
· recommended that a small number of classification units be moved or their description amended and two levy risk groups be removed, to match changing market conditions and clarify coverage. This reduces the number of levy risk groups from 129 to 127.
· recommended that 41 risk groups for the pre-1999 claims levy be maintained.
· made recommendations on a Workplace Safety Discounts Scheme for Small Businesses operating in Classification Units in the agriculture, forestry, fishing, construction, road freight transport and motor trade industries
Individual rates will be finalised and incorporated into Levy Regulations once the Government has set the average rates.
For a copy of the detailed recommendations made to the Minister for ACC, you can:
· email consultation@acc.co.nz
· call ACC on 0800 ACC RATES (0800 222 728)
· visit www.acc.co.nz