New Zealand Gazette – 2005 – No. 172

Page 4315

✨ ACC Levy Rates Consultation



6 OCTOBER 2005

NEW ZEALAND GAZETTE, No. 172

4315

● Pre-1999 claims levy (residual claims levy).
● Non-work levy.
● Motor vehicle levy.

As required under section 331 of the Injury Prevention, Rehabilitation and Compensation Act 2001, the ACC Board requests
your input on its levy proposals before making recommendations to the Minister for ACC. All interested parties are invited to
make submissions on the proposed levies and regulations.

Summary of proposed levy rates for 2006/2007 (G.S.T. exclusive)

Who pays Levy component Current 2005/2006 average Proposed 2006/2007 average Proposed change
Employers Levy rate for work claims in 2006/2007 $0.88 $0.86 Down $0.02
Levy rate for injury claims prior to 1999 $0.33 $0.35 Up $0.02
(these are average rates) Combined levy rate per $100.00 payroll $1.21 $1.21 No change
Self-employed people Levy rate for work claims in 2006/2007 $1.82 $2.06 Up $0.24
Levy rate for injury claims prior to 1999 $0.33 $0.35 Up $0.02
Levy rate for non-work claims in 2006/2007 $1.07 $1.16 Up $0.09
(these are average rates) Combined levy rate per $100.00 income $3.22 $3.57 Up $0.35
All earners – through Inland Revenue Levy rate per $100.00 income for non-work claims in 2006/2007 $1.07 $1.16 Up $0.09
Motorists – through licensing fees and petrol levy Levy per vehicle $206.93 $190.00 Down $16.93

All amounts are shown excluding G.S.T.

Discussion papers

The details of the proposed levy rates and regulations are set out in consultation documents. For copies of these documents and
the actuarial assessments, you can:

● download the documents in PDF format from www.acc.co.nz
● email consultation@acc.co.nz
● write to Levy Consultation, ACC, P.O. Box 242, Wellington
● call ACC on 0800 ACC RATES.

Submissions

Submissions must be in writing and received by ACC no later than 3 November 2005 at 5.00 p.m. They should be sent
to Levy Consultation, ACC, P.O. Box 242, Wellington, or emailed to consultation@acc.co.nz

An overview of reviewing the levies

Each year, ACC reviews the levies it charges.

Period Action
From October – early November The ACC Board invites the public to make submissions on levy rate proposals and options.
The ACC Board considers the submissions.
November–December The ACC Board makes recommendations to Government, via the Minister for ACC,
about any changes to the levy rates for the following levy year.
1 April The regulations and new levy rates come into effect (except the motor vehicle levy).
1 July The regulations and new motor vehicle levy rate come into effect.

Why do levies change?

ACC meets the ongoing cost of claims from the levies it collects each year and the interest it earns by investing any unspent
levies or reserves.

There are a number of factors that affect levy rates. These include the forecast trends in injury and death rates, the duration and
cost of claimants’ rehabilitation or compensation, and economic factors such as inflation and interest rates. Rising interest rates
increase the future earnings expected from ACC’s investments and decrease ACC’s liability for past injuries and, as a result,
reduce the levy rates. The opposite is true when interest rates reduce.

Proposals for each group of levy payers

Employers

Employer levies are based on their employee payroll. Employers pay:

● a levy for cover on work-related injuries to their employees in 2006/2007, and
● a levy to pay for injury claims prior to 1999.

ACC proposes:

● maintaining the combined levy rate for employers at an average of $1.21 per $100.00 of payroll by:
○ decreasing the levy rate on cover for 2006/2007 work claims from $0.88 to $0.86
○ increasing the levy rate for injury claims prior to 1999 from $0.33 to $0.35



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2005, No 172


Gazette.govt.nz — PDF NZ Gazette 2005, No 172




✨ LLM interpretation of page content

🏥 Consultation on Proposed ACC Levy Rates (continued from previous page)

🏥 Health & Social Welfare
ACC, Levy Rates, Consultation, Injury Prevention, Rehabilitation, Compensation