The ACC Board has recommended to the Minister for ACC a number of changes to the levy rates for the 2003/04 levy year. The recommended rates reflect:
? the latest claims experience;
? recent cost trends in each scheme; and
? submissions received as part of the public consultation process.
The ACC Board's recommendations are not binding on the Minister, who will obtain further advice from officials and actuaries. She may accept, reject or modify the Corporation's recommendations.
All ACC Board recommendations noted below are excluding G.S.T. except where indicated. The ACC Board recommendations for levy payer groups can be summarised as follows:
Employers'
The employers' composite average levy rate decreases 4% from $1.20 to $1.15 per $100 of payroll, comprising of:
? the average employers (workers compensation) levy rate reduces from $0.85 to $0.84 per $100 of payroll and the 550 levy classification units are grouped into 130 risk groups.
? the average residual claims (injuries prior to July 1999) levy rate reduces from $0.35 to $0.31 per $100 of payroll and the 550 levy classification units are grouped into 41 risk groups.
Self-employed
The self-employed composite average levy rates decreases 1% from $3.17 to $3.13 per $100 of liable earnings, comprising of:
? the average self-employed (workers compensation) levy rate remains unchanged at $1.75 per $100 of liable earnings and the 550 levy classification units are grouped into 130 risk groups.
? the average residual claims (injuries prior to July 1999) levy rate reduces from $0.35 to $0.31 per $100 of liable earnings and the 550 levy classification units are grouped into 41 risk groups.
? the self-employed earners (non-work injuries) levy rate remains unchanged at $1.20 (G.S.T. inclusive) per $100 of earnings.
Earners' (non-work injuries)
That the levy rate remains unchanged at $1.20 (G.S.T. inclusive) per $100 of earnings.
Motor Vehicle (injuries involving motor vehicles)
That the composite average levy rate (including the petrol excise duty) increases by 25% from the current $169.67 to
$211.95 per vehicle.
That the ACC portion of the annual motor vehicle licence fee remains unchanged at $141.10 per standard petrol-powered vehicle.
That the petrol excise duty increases from 2.3 cents per litre to 5.08 cents per litre.
That the motor vehicle classification system is retained with the following changes:
? That the motor cycle levy differential increases from 150% to 200% of the rate for standard vehicles. At the 200% differential, motor cycle owners would only be funding approximately 18% of the full funded costs of injuries to motor cyclists and/or their passengers.
? That each trade plate type be included in the classification which matches the vehicle type covered.
ACC's recommendations can be summarised as follows:
Levy
Account Current
2002/2003 Recommended
2003/2004 Recommended
Changes
Employers' $0.85 $0.84 1% Decrease
Self-employed Work $1.75 $1.75 0%
Earners' $1.20 $1.20 0%
Motor Vehicle+ $169.67 $211.95 25% Increase
Residual Claims $0.35 $0.31 11% Decrease
+ Composite Levy including the Petrol Excise Duty.
All levies quoted are exclusive of G.S.T., except the Earners' Account.
Individual rates will be finalised and incorporated into draft Regulations once the base rates have been set by the Minister.
Adjustment to 71 Self-employed Work Account 2002/03 Levy Rates
The ACC Board has also recommended to the Minister for ACC that the 71 classification units with incorrectly calculated rates for the 2002/03 levy year be amended. All amendments to 2002/03 rates will result in lower levies for the self-employed. Copies of the 71 classification units to change are available from ACC.
Copies of the detailed recommendations made to the Minister may be obtained by contacting ACC on (04) 918 7923 or by email: consultation@acc.co.nz