Under the Injury Prevention, Rehabilitation, and Compensation Act 2001, the ACC Board has recommended to the Minister for ACC some changes to the levy rates for the 2007/08 levy year.
In recommending these levy rates, the board has considered 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 before making recommendations to Cabinet.
Cabinet is expected to decide on the 2007/08 levy rates by December 2006.
The ACC Board levy recommendations are summarised as follows:
Who pays Levy component Current 2006/07 Recommended 2007/08 Proposed change
Employers* Average levy rate for work claims in 2007/08 $0.86 $0.78 Down 8c
Average levy rate for injury claims prior to 1999 $0.35 $0.43 Up 8c
Average combined levy rate per $100.00 payroll $1.21 $1.21 No change
Self-employed people* Average levy rate for work claims in 2007/08 $2.03 $1.77 Down 26c
Average levy rate for injury claims prior to 1999 $0.35 $0.43 Up 8c
Levy rate for non-work claims $1.16 $1.16 No change
Average combined levy rate per $100.00 income $3.54 $3.36 Down 18c
All earners through Inland Revenue Levy rate per $100.00 income for non work claims $1.16 $1.16 No change
Motorists – through licensing fees and petrol levy Average levy rate per vehicle $190.00 $204.78 Up $14.78
*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 GST exclusive.
The employer and self-employed levy rates recommended to the Minister for ACC are different to those proposed for public consultation.
The key reasons for changes in the rates are:
? the inclusion of lump sum funding for Schedule 2 gradual process and occupational disease claims;
? revised estimates for the costs of work related gradual process claims;
? a change in funding policy for the Residual Claims Account; and
? revised reserves adjustment to improve long-term stability.
ACC also recommended that:
? a small number of classification units be moved to new risk groups that more closely match their risk of injury;
? 127 levy risk groups be maintained; and
? 41 risk groups for the pre-1999 claims levy be maintained.
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)
? web site: www.acc.co.nz/levyconsultation