Under the Injury Prevention, Rehabilitation, and Compensation Act 2001, the ACC Board has recommended to the Minister for ACC the levy rates for the 2008/09 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 2008/09 levy rates by December 2007.
The Minister for ACC will announce the rates once they are decided.
The ACC Board levy recommendations are summarised as follows (GST exclusive):
Who pays Levy Component Current 2007/08 Recommended 2008/09 Proposed change
Self-employed people* and Employers (invoiced directly by ACC) Levy rate for work claims in 2008/09 $0.89 $0.78
Levy rate for injury claims prior to 1999 $0.43 $0.48
Combined average levy rate per $100.00 liable earnings $1.32 $1.26 down 6c
Note: These are average rates. Individual rates for industry groups may increase or decrease based on recent experience.
Employees (through PAYE) Levy rate for non-work claims in 2008/09 per $100.00 liable earnings $1.1556 $1.2444^ up 8.88c
Motorists (through licensing fees and petrol levy) Average levy per vehicle $204.78 $254.63 up $49.85
*Self-employed people and non-PAYE shareholders also pay the non-work claims levy.
^Recommended non-work claims levy including GST is $1.40 ($1.30 in 2007/08).
The only change in the average levy rates recommended to the Minister for ACC from those consulted on publicly is
a $0.01 increase in the combined average levy rate for self-employed people and employers.
This change is in the levy rate for injury claims prior to 1999 and is the result of updating the interest rate used to calculate levies from 6.61% as at 30 June 2007 to 6.1% at 30 September 2007.
The only change in the motor vehicle levy is that it is recommended that it is split between petrol levy (60%) and licence
fee (40%).
ACC also recommended that:
- a small number of changes be made to classification units;
- the number of levy risk groups be reduced from 127 to 117 and be based on the latest version of the Australia New Zealand Standard Industrial Classification (ANZSIC) codes; and
- 41 risk groups for 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
- write to Levy Consultation, ACC, PO Box 242, Wellington
- call ACC on 0800 ACC RATES (0800 222 7283)