New Zealand Gazette – 2006 – No. 103

Page 3032

✨ ACC Levy Consultation



3032

NEW ZEALAND GAZETTE, No. 103

31 AUGUST 2006

An overview of reviewing the levies

Each year, ACC reviews the levies it charges.

From September to early October The ACC Board invites the public to make submissions on levy rate proposals and options.
October 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.

What’s in it for you?

Compensation for injuries resulting from accidents was introduced in 1974 so New Zealanders wouldn’t have to go to court to seek compensation if they were injured.

New Zealand is the only country in the world with an accident compensation scheme that covers every one of its citizens (and visitors to the country) for personal injuries, 24 hours a day, seven days a week.

When an injury happens, ACC will help with:

  • medical costs
  • loss of earnings compensation – of up to 80% of your earnings
  • rehabilitation costs
  • support needed for you or your employee to return to work or independence as soon as possible.

This is your chance to have your say on what you pay.

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 2007/2008; 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 2007/2008 work claims from $0.86 to $0.67
    • increasing the levy rate for injury claims prior to 1999 from $0.35 to $0.54
  • moving three individual classifications to different risk groups (or pricing pools)
  • maintaining the number of risk groups for cover on 2007/2008 work injuries to 127, and maintaining the existing 41 risk groups for claims prior to 1999.

Self-employed

Self-employed levies are based on their earnings.

Self-employed pay:

  • a levy for cover on their work-related injuries in 2007/2008;
  • a levy to pay injury claims prior to 1999; and
  • a levy on their cover for non-work injuries.

ACC proposes:

  • decreasing the combined levy rate for self-employed to an average of $3.44 per $100.00 of earnings by:
    • decreasing the levy rate on cover for 2007/2008 work claims from $2.03 to $1.74
    • increasing the levy rate for injury claims prior to 1999 from $0.35 to $0.54
    • maintaining the levy rate on cover for non-work claims at $1.16
  • moving three individual classifications to different risk groups (or pricing pools)
  • maintaining the number of risk groups for cover on 2007/2008 work injuries to 127, and maintaining the existing 41 risk groups for claims prior to 1999.

Earners

Earner levies are based on the earnings of employees and self-employed people, and pay for cover on their non-work injuries.

ACC proposes:

  • maintaining the levy rate on cover for non-work claims from $1.16 per $100.00 of earnings.


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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2006, No 103


Gazette.govt.nz — PDF NZ Gazette 2006, No 103




✨ LLM interpretation of page content

🏥 Overview of ACC Levy Review Process

🏥 Health & Social Welfare
ACC, Levy Rates, Review Process, Timeline, Public Submissions

🏥 Benefits of ACC Scheme

🏥 Health & Social Welfare
ACC, Compensation, Injury Cover, Medical Costs, Rehabilitation

🏥 Factors Affecting ACC Levy Rates

🏥 Health & Social Welfare
ACC, Levy Rates, Injury Trends, Economic Factors, Interest Rates

🏥 Proposed Employer Levy Changes

🏥 Health & Social Welfare
ACC, Employer Levies, Payroll, Work Injuries, Risk Groups

🏥 Proposed Self-employed Levy Changes

🏥 Health & Social Welfare
ACC, Self-employed Levies, Earnings, Work Injuries, Non-work Injuries

🏥 Proposed Earner Levy Changes

🏥 Health & Social Welfare
ACC, Earner Levies, Non-work Injuries