✨ ACC Levy Rates Report
NEW ZEALAND GAZETTE, No. 22 — 2 MARCH 2017
| To fund the cost of new claims during the new levy year | $0.64 | $0.66 | $0.67 |
| To fund administration costs | $0.27 | $0.25 | $0.26 |
| Funding adjustment | -$0.11 | -$0.21 | |
| Average Work Levy rate | $0.80 | $0.72 |
The estimate of claim costs for 2016/17 has increased reflecting higher volumes of new claims than anticipated. In addition, projections for claim durations have been increased to reflect recent trends in rehabilitation performance. 2017/19 claim costs are projected to increase compared with the 2016/17 estimate because of medical and rehabilitation cost inflation (above the Labour Cost Index (LCI)).
Appendix B: Earners’ Account
Earners’ Account Long-Term Projections
| Year ending 31 March | Levy rates ($ per $100 liable earnings) | Levy ($m) | Lifetime cost of new-year claim costs ($m) | Administration costs for new-year claim costs ($m) | Levy required to fund lifetime cost of new-year claim costs (per $100 liable earnings) | Levy required to fund administration costs (per $100 liable earnings) | Accrued assets ($m) | OCL ($m) | Account balances ($m) | Funding ratio |
|---|---|---|---|---|---|---|---|---|---|---|
| 2016/17 | 1.21 | 1,442 | 1,398 | 231 | 1.17 | 0.19 | 8,939 | 7,274 | 1,665 | 123% |
| 2017/18 | 1.21 | 1,496 | 1,481 | 243 | 1.20 | 0.20 | 9,156 | 7,580 | 1,577 | 121% |
| 2018/19 | 1.21 | 1,555 | 1,566 | 255 | 1.22 | 0.20 | 9,337 | 7,885 | 1,452 | 118% |
| 2019/20 | 1.32 | 1,755 | 1,639 | 265 | 1.23 | 0.20 | 9,649 | 8,208 | 1,441 | 118% |
| 2020/21 | 1.32 | 1,810 | 1,707 | 276 | 1.24 | 0.20 | 9,951 | 8,552 | 1,400 | 116% |
| 2021/22 | 1.37 | 1,936 | 1,780 | 285 | 1.26 | 0.20 | 10,305 | 8,922 | 1,383 | 116% |
| 2022/23 | 1.37 | 1,994 | 1,856 | 294 | 1.27 | 0.20 | 10,655 | 9,319 | 1,337 | 114% |
| 2023/24 | 1.42 | 2,130 | 1,935 | 304 | 1.29 | 0.20 | 11,074 | 9,738 | 1,336 | 114% |
| 2024/25 | 1.42 | 2,194 | 2,020 | 314 | 1.30 | 0.20 | 11,490 | 10,183 | 1,306 | 113% |
| 2025/26 | 1.46 | 2,322 | 2,108 | 324 | 1.32 | 0.20 | 11,956 | 10,651 | 1,305 | 112% |
| 2026/27 | 1.46 | 2,390 | 2,199 | 334 | 1.34 | 0.20 | 12,410 | 11,137 | 1,273 | 111% |
| 2027/28 | 1.52 | 2,559 | 2,293 | 339 | 1.36 | 0.20 | 12,940 | 11,641 | 1,299 | 111% |
| 2028/29 | 1.52 | 2,633 | 2,392 | 349 | 1.38 | 0.20 | 13,456 | 12,161 | 1,295 | 111% |
The table above presents the projected levy and funding path after applying the funding policy. The table below summarises the key assumptions underlying these projections.
Earners’ Account Key Assumptions
| Year ending 31 March | Claim numbers (entitlement claims) | Entitlement claim frequency (claims per 1,000 earners) | Exposure (number of earners) (000) | Exposure (liable earnings) ($b) | Investment return forecasts (June year) | Risk-free interest rates (June year) | Standard inflation (LCI) |
|---|---|---|---|---|---|---|---|
| 2016/17 | 60,844 | 25.15 | 2,420 | 119 | 4.4% | 2.0% | 1.8% |
| 2017/18 | 63,432 | 25.70 | 2,468 | 124 | 4.5% | 1.9% | 1.8% |
| 2018/19 | 66,112 | 26.24 | 2,519 | 129 | 4.6% | 2.3% | 1.8% |
| 2019/20 | 67,359 | 26.36 | 2,556 | 133 | 4.8% | 2.6% | 1.8% |
| 2020/21 | 68,038 | 26.36 | 2,581 | 137 | 4.9% | 3.0% | 1.8% |
| 2021/22 | 68,678 | 26.36 | 2,606 | 142 | 5.0% | 3.3% | 1.8% |
| 2022/23 | 69,313 | 26.36 | 2,630 | 146 | 5.1% | 3.5% | 1.8% |
| 2023/24 | 69,944 | 26.36 | 2,654 | 150 | 5.3% | 3.7% | 1.8% |
| 2024/25 | 70,563 | 26.36 | 2,677 | 155 | 5.4% | 3.8% | 1.8% |
| 2025/26 | 71,172 | 26.44 | 2,692 | 159 | 5.4% | 3.9% | 1.8% |
| 2026/27 | 71,562 | 26.44 | 2,706 | 164 | 5.4% | 4.0% | 1.8% |
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NZ Gazette 2017, No 22
✨ LLM interpretation of page content
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Report on ACC Levy Rates for Work and Earners' Accounts
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🏥 Health & Social WelfareAccident Compensation, Levy rates, Work Account, Earners' Account, Financial projections