This page explains how ACC WorkPlace Cover levies are calculated, what they cover, and options for reducing levies.
How ACC WorkPlace Cover levies are calculated
When calculating your client’s levies, we use:
- Their liable earnings, as provided to Inland Revenue on the Employer Monthly Schedule (IR348)
- The appropriate levy classification unit.
ACC WorkPlace Cover levies pay for the current and future costs of work-related injury claims that occur in the levy year (1 April to 31 March). For more information about the invoicing, go to the Invoicing section.
What is covered by the various parts of your client’s levy?
The following table shows what each levy covers, and how this levy is calculated:
Levy name |
What the levy covers |
How it is calculated
|
|---|---|---|
Current portion of the Work Account levy |
Covers medical, rehabilitation and lost earnings compensation costs for work-related injuries |
The classification unit rate x each $100 of liable earnings |
Residual portion of the Work Account levy |
Provides funds for the ongoing costs of work-related injuries that occurred before 1 July 1999 |
The residual portion of the levy rate x each $100 of liable earnings |
Health and Safety in Employment levy |
ACC collects this levy on behalf of the Department of Labour. It is used to help fund Occupational Safety and Health |
5c x each $100 of liable earnings |
How can my client reduce their levies?
Because levy rates are based mainly on the number and cost of claims, the fewer injury claims made, the more the levy rate may decrease. Your client can help reduce their levies by:
- keeping themselves and their workers safe
- learning from other employers in order to find ways to reduce injuries in the industry overall.
Helping injured people return to work more quickly and, in turn, reduce costs.
Your client should also look at ACC’s incentive-based programmes. The programmes have been introduced to help improve workplace health and safety. If your client can meet the criteria, they may be entitled to a work levy discount.
To find out more about these programmes, see:
ACC Workplace Safety Discounts
ACC Workplace Safety Management Practices programme
Last updated: 23 June 2010