ACC will be consulting on the 2003/2004 levies to be regulated for the following Accounts:
? Employers';
? Self-employed Work;
? Earners';
? Motor Vehicle; and
? Residual Claims.
There are generally two components to these levies:
? a levy to fund the full cost of injuries that occur during the 2003/2004 levy year; and
? a residual component to fund existing injuries that occurred before 1 July 1999 when ACC operated on a pay-as-you-go basis.
The ACC Board is keen to have public input on its levy proposals before making recommendations to the Minister for ACC in October 2002. ACC invites all interested parties to make submissions on the following proposed rates and Regulations:
Employers' Account
ACC proposes:
? that the average levies paid by employers be reduced by 3% from an average $0.85 to $0.82 per $100.00 of payroll.
? two options for the number of risk groups to be used as the basis for levy setting:
- 130 risk groups; or
- 55 risk groups.
? some changes to individual classifications to match changing market conditions and to clarify coverage.
? the introduction of a new programme called Workplace Safety Evaluation that targets intensive assistance to employers with poor health and safety records, backed up by a possible financial penalty (50% of an employer's annual ACC levy) for those who do not respond.
Self-employed Work Account
ACC proposes:
? that the average Self-employed Work Account levy be reduced by 2% from $1.75 to $1.72 per $100.00 of liable earnings.
? two options for the number of risk groups to be used as the basis for levy setting:
- 130 risk groups; or
- 55 risk groups.
? some changes to individual classifications to match changing market conditions and to clarify coverage.
Residual Claims Account
ACC proposes that the:
? average residual claims levy be reduced by 14% from $0.35 to $0.30 per $100 of payroll/liable earnings.
? number of risk groups to be used as the basis for levy setting be reduced from 123 to 41.
Earners' Account
The composite earners' levy is proposed to remain at $1.07 per $100.00 of earnings.
Motor Vehicle Account
ACC proposes:
? that the average levy paid by motorists be increased by 22% from $169.67 to $207.26. This increase in levies has been caused primarily by an increase in and improved estimation of long-term rehabilitation costs of those seriously injured.
? a range of funding options for petrol-powered vehicles which vary the relative funding contributions from petrol excise and the annual licence fee.
The following table illustrates four options within the range between the current rate of 2.3 cents per litre up to 15.9 cents per litre, the rate that would provide all the funding required without the need to have a levy component to the licensing fee.
Funding Source Maintain Petrol Excise
Rate Maintain Motor Vehicle Licensing Charge Mid-range
Petrol Excise
Rate Maximum Petrol Excise Rate
Excise duty rate per litre of petrol 2.3 cents 5.1 cents 9.0 cents 15.9 cents
Composite average licence fee for all petrol powered vehicles $177.27 $140.55 $89.92 $Nil
? two options for classifying vehicles to be used as the basis for levy setting:
1. Retain the current motor vehicle classification system with minor modifications proposed:
- increase motorcycle levy differential (from 150% to 200%);
- replace separate trade plate classification with the allocation of four types of trade plates to their respective levy class.
2. No classification system - everyone pays the same levy rate.
Note that in both classification options non-petrol powered vehicles would continue to pay their total ACC levy through the licensing fee.
Summary of Proposed 2003/2004 Average Levy Rates
The above levy proposals can be summarised as follows (figures are per $100 of payroll/liable earnings, exclusive of G.S.T.):
Account Current 2002/2003
average Proposed 2003/2004
average Proposed
changes
Employers' (workers' compensation) 0.85 0.82 -3%
Self-employed Work (workers' compensation for self-employed) 1.75 1.72 -2%
Earners' (non-work claims) 1.07 1.07 0%
Residual Claims 0.35 0.30 -14%

Account Current 2002/2003 Proposed 2003/2004 Proposed
changes
Motor Vehicle (composite average) 169.67 207.26 22%
Consultation on Amended 2002/2003 Self-employed Work Account Levy Rates
ACC proposes to amend 2002/2003 levy rates for 71 classification units based in 12 risk groups. The amendment is required to implement adjustments used for calculating previous rates.
Discussion Papers
Full details of the levy rates have been set out in discussion papers (which include the proposed Regulations). Copies of the discussion papers and the actuarial assessments are available from ACC by:
? Email: consultation@acc.co.nz
? Web site: www.acc.co.nz
? Telephone: (04) 918 7375
? Written: Levy Consultation, ACC, P.O. Box 242, Wellington.
Submisssions
Submissions must be in writing and received by ACC no later than 5.00 p.m. on 10 October 2002.
ACC will host two Levy Consultation briefings on Thursday, 19 September 2002. All interested parties are welcome. The venues are as follows:
WELLINGTON - city
Date: Thursday, 19 September 2002
Time: 8.30 a.m. to 10.00 a.m.
Venue: Wellington Town Hall (Air New Zealand Suite)
AUCKLAND - city
Date: Thursday, 19 September 2002
Time: 3.30 p.m. to 5.00 p.m.
Venue: Carlton Hotel