and Levy Rates
ACC has recommended to the Minister for Accident Insurance substantial reductions in the premium and levy rates for
the 2001/02 year. This is due to lower claim numbers and costs as ACC continues its emphasis on injury prevention
and rehabilitation.
The recommended rates, excluding G.S.T., are as follows:
Employers' Account (workers' compensation)
ACC recommends a 28% reduction in the average net premium rate from $1.11 to $0.80c for every $100.00 of payroll.
With the inclusion of the Workplace Safety Management Practices loading, the gross average premium would reduce from the current $1.16 to $0.85c for every $100.00 of payroll.
Residual Claims Levy
ACC recommends a 23% reduction in the average levy from $0.40c to $0.31c for every $100.00 of payroll. This levy, collected by Inland Revenue, funds the ongoing costs of claims from the old Employers' Account which occurred prior to
30 June 1999.
Self-employed Work Account
ACC recommends a 21% reduction in the average premium rate from $1.64 to $1.30 for every $100.00 of earnings.
This account covers work accidents suffered by self-employed people.
Earners' Account (non-work accidents)
ACC recommends a 23% reduction in the combined premium and levy from $1.30 to $1.00 (G.S.T. inclusive) for every $100.00 of earnings.
Motor Vehicle Account (accidents involving motor vehicles)
ACC recommends that the ACC portion of the annual motor vehicle licence fee be reduced by 6% from $132.20 to $124.65 for a standard vehicle.
This can be summarised as follows:
Premium Levy
Account Current Recommended Current Recommended Recommended
2000/01 2001/02 2000/01 2001/02 Saving
Employers' $1.11 $0.80 ? ? 28%
Residual Claims ? ? $0.40 $0.31 23%
Self-employed Work $1.64 $1.30 ? ? 21%
Earners' $0.96 $0.86 $0.20 $0.03 23%
Motor Vehicle $82.40 $62.00 $49.80 $62.65 6%
*All premiums and levies quoted are exclusive of G.S.T. unless specifically indicated.
ACC's premium recommendations are not binding on the Minister who can accept, reject or modify the Corporation's recommendations.
Individual premiums for each classification will be finalised and incorporated into draft regulations by the Department of Labour once the base premiums have been set.
Copies of the detailed recommendations made to the Minister may be obtained by contacting the ACC Marketing Services Department on (04) 918 7588.