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ACC Levy rates that come into effect from tomorrow
A reduction in the Work levy and maintenance of the Earners’ levy will come into effect on 1 April 2017. These include:
- 10% decrease in the Work Levy
- Maintaining the Earners’ Levy at 1.21 per $100 of earnings.
The Work levy and the Earners’ levy rates for the 2017 – 2019 levy period were confirmed by the government last December.
“The 10 per cent reduction in the Work levy paid by employers and those who are self-employed is a result of ACC’s improved funding position for the Work Account,” says ACC Board Chair, Dame Paula Rebstock.
All employers and self-employed people working in New Zealand pay a Work levy that goes into the Work Account to cover any accidents that happen in the workplace.
The Earners’ levy rate, paid by all working New Zealanders through their salaries and wages, will remain at the current rate of $1.21 per $100 of earnings for the next two years.
The Earners’ levy covers accidental injuries that happen outside of work. For example weekend DIY, playing netball or gardening.
“ACC will continue to invest the levies in injury prevention programmes to minimise the risk of injuries before they happen. Making New Zealand workplaces healthier and safer is a priority for ACC,” says Dame Paula.
The levies were calculated based on the estimated lifetime costs of new claims and the funding position of ACC's Accounts as at 31 March 2016.