The Accident Compensation Corporation (ACC) is consulting on the 2009/10 levies.
You have the opportunity to have a say on our proposed rates for the coming year by making a submission during our consultation process. Legislation requires us to consult levy payers about proposed rates and regulations before we take our recommendations to the Minister for ACC. This consultation is required under section 331 of the Injury Prevention, Rehabilitation, and Compensation Act 2001.
Why do levies change?
We try to keep rates as stable as possible from one year to the next.
Rates can increase, for example because people are taking longer to recover from their injuries. And they can decrease, for example because injuries have become less serious and expensive.
Good investment helps us to keep levy rates as low as possible. These efforts also help reduce the costs of cover to levy payers.
This is your chance to have your say on what you pay
Summary of the proposed levy rates for 2009/10 (GST exclusive)
Who pays Levy Component Current 2008/09 Proposed 2009/10 Proposed change
Self-employed people* and Employers (invoiced directly by ACC) Levy rate for work claims in 2009/10 $0.72 $0.70
Levy rate for injury claims prior to 1999 $0.54 $0.56
Combined average levy rate per $100.00 liable earnings $1.26 $1.26 No change
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 claimsin 2009/10 per $100.00 liable earnings $1.2444 $1.511^ Up 27c
Motorists (through licensing fees and petrol levy) Average levy per vehicle $254.63 $287.00 Up $32.37
*Self-employed people and non-PAYE shareholders also pay the non-work claims levy.
^Proposed non-work claims levy including GST is $1.70 ($1.40 in 2008/09).
To see how the proposed rate changes affect you or your industry, visit the ACC website for more detailed information. You will find out what your proposed rate is by visiting www.acc.co.nz/levyconsultation
Proposals for each group of levy payers
Self-employed and Employers
Employer levies are based on their employee payroll. Employers pay:
? a levy to cover work-related injuries to their employees in 2009/10; and a levy to cover injury claims prior to 1999.
Self-employed levies are based on their earnings. Self-employed people pay:
? a levy to cover their work-related injuries in 2009/10; a levy to pay for injury claims prior to 1999 and non-work claims prior to 1999; and a levy to cover their non-work injuries.
ACC proposes:
? maintaining the combined levy rate for self-employed people and employers at an average of $1.26 per $100 of liable earnings by:
? decreasing the levy rate to cover 2009/10 work claims from $0.72 to $0.70
? increasing the levy rate to cover injury claims prior to 1999 from $0.54 to $0.56
? maintaining the number of risk groups to cover 2009/10 work injuries at 117, and maintaining the existing 41 risk groups for injury claims prior to 1999.
Earners
The earners levy is based on the earnings of employees and self-employed people, and pays for cover for their non-work injuries.
ACC proposes:
? increasing the levy rate to cover non-work injuries to $1.511 per $100 of earnings.
Motorists
Motorists pay for most injuries involving moving vehicles on public roads, through a combination of:
? a levy paid by motor vehicle owners through their annual vehicle licensing fee (the levy is based on the type of vehicle)
? a levy on petrol sales paid by vehicle users.
ACC proposes:
? increasing the combined average motor vehicle rate from $254.63 to $287.00 per vehicle
? increasing the petrol levy for 2009/10 to 9.90 cents per litre and increasing the average licensing fee per petrol vehicle to $168.45, resulting in a combined average levy rate of $287.00 per petrol vehicle
? maintaining the existing nine vehicle classifications.
Consultation discussion documents and related papers
We have published our proposed levy rates for 2009/10, and the basis on which we’ve made those proposals. To get a copy of whichever consultation documents you wish to see or a copy of the actuarial advice upon which we have based our proposed rates, visit the ACC website www.acc.co.nz/levyconsultation, call 0800 ACC RATES (0800 222 728) or send an email with your request to consultation@acc.co.nz
Submissions
To make a submission, you need to write to us setting out what you think. As well as commenting on the proposed levy rates for the year, you can comment on all aspects of the ACC Scheme.
Your submission must include your name, your address, and your contact phone number(s).
You can send your submission to: Levy Consultation, ACC, PO Box 242, Wellington. Facsimile: (04) 918 4395. Email: consultation@acc.co.nz
Deadline for submissions: 5.00pm, 8 October 2008.
Please note that all correspondence and submissions on this matter may be the subject of a request under the Official Information Act 1982.