The ACC Board has recommended to the Minister for ACC a number of changes to the levy rates for the 2004/05 levy year. The recommended rates reflect:
? submissions received as part of the public consultation process;
? the latest claims experience; and
? recent cost trends in each scheme.
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 is expected to finalise the 2004/05 levy rates by December 2003.
The ACC Board levy recommendations are summarised as follows (G.S.T. exclusive) for every $100.00 of earnings (except Motor Vehicle, which is an average levy per vehicle):
Who Pays Levy Component Current 2003/04 Average Rate Recommended 2004/05
Average Rate Recommended Change
- Employers' Work Account levy
- Residual Claims Account levy $1.21
$0.30 No change
- Self-employed Work Account levy
- Residual Claims Account levy
- Earners' levy $3.17
$1.07 Reduction of 2.2%
Earners - through
Inland Revenue TOTAL
- Earners' Account levy
- Residual Earners' Account levy $1.0667
$0.0021 No change
Motorists - through annual vehicle
licence fee and petrol levy TOTAL
- Motor Vehicle Account levy and petrol levy
- Residual Motor Vehicle Account levy $211.96
$87.54 Reduction of 6.8%
ACC also recommended:
? that the 130 levy risk classification groups are retained for the employer and self-employed levies and the 41 levy risk groups are retained for the residual levy.
? that a small number of levy classifications be moved or their description amended to better reflect recent claims experience and appropriate classification of employers.
? that the petrol levy remains unchanged at 5.08 cents per litre.
? that the composite average motor vehicle levy collected from petrol powered vehicles through the annual vehicle licence fee decreases from $141.18 to $126.24 per petrol powered vehicle.
? that the levy for non-petrol powered goods vans/truck/utility vehicles increases in its relativity to standard non-petrol powered vehicles, from 116% to 121%.
Individual rates will be finalised and incorporated into draft Levy Regulations once the Government has set the average rates.
Copies of the detailed recommendations made to the Minister for ACC may be obtained by contacting ACC by telephone on (04) 918 7246 or by email: firstname.lastname@example.org