As you know, changes were made to this year’s ACC levy rates following consultation last year.
The first of these changes come into effect on 1April2010, so make sure you know how this will affect you.
Funded by |
What’s covered |
Change in levy rate | |
|---|---|---|---|
Composite Average Work Levy |
Employers (based on liable earnings of their employees) Self-employed and private domestic workers (based on their liable earnings) |
Work-related personal injuries affecting employees, the self-employed and private domestic workers |
Increase from $1.31 to $1.47 (excluding GST) per $100 of liable earnings – this change is effective from 1April2010 |
Composite Average Earner Levy |
Employees, self-employed and private domestic workers (based on their earnings) |
Non-work injuries (eg at home of during sport and recreation) suffered by people in the paid workforce |
Increase from $1.70 to $2.00 (including GST) per $100 of liable earnings – this change is effective from 1April2010 |
What is the reason behind the cost increases that are driving ACC levies up?
Claim costs have been increasing significantly above the rate of inflation in recent years, due to increased claim numbers, higher treatment costs, deteriorating rehabilitation rates and scheme extensions.
Work Account: In recent years there has been a drop off in the number of work claims made, which is good news. However, the cost of each claim has been increasing and it is projected to continue increasing at a rate higher than inflation. This is the main driver of costs for the Work Account.
Earner Account: Both the number of claims and the average cost of non-work injury claims under the Earners’ Account have increased in recent years, especially since 2005.