2021 ACC's Experience Rating proposals

Did you tell us what you think about proposals for businesses in the Experience Rating Programme? Read the results over at acc.co.nz/levyresults
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Business owner
Do you own a business and employ people? You pay an ACC Work levy. Take a look at the proposed changes and give us your feedback.
Self-employed or contractor
Do you own your own business or pay your own ACC invoices? Some of our proposed changes might impact you.
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1 Sep 2021
Open for feedback

Tell us what you think about our proposals.

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5 Oct 2021
Consultation closes

We’ll review and consider all feedback submitted to us.

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Nov 2021
Recommendations to the Minister

Taking account of what you tell us, we’ll make recommendations on levy rates to the Minister for ACC.

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Dec 2021
Final decisions by Government

The Government will make the decision on final levy rates, which will take effect next year and be in place for three years.

2021 Experience Rating proposals

ACC would like your feedback on the proposals for the Experience Rating Programme, included in the 2021 Levy Consultation.

Have your say on our proposals to: 

  • raise the maximum adjustment to levy increases from 75% to 100% for businesses in the Experience Rating Programme  
  • increase the impact of workplace fatalities on levies for businesses in the Experience Rating Programme. 

ACC's Experience Rating proposals

All these proposals are available in full under the 'Open for feedback' tab above. 

Submissions close on Tuesday 5 October 2021. 

About Experience Rating

Experience rating works by adjusting employers’ Work levies according to their recent claims history. The system was introduced to the Accident Compensation Scheme in April 2011 to: 

  • improve levy equity across employers  
  • reduce the number and severity of workplace injuries 
  • reduce the time it takes for injured people to return to work.  

Experience Rating includes two programmes: 

  • the Experience Rating Programme for medium-to-large businesses  
  • No Claims Discount Programme for smaller businesses. 

Experience Rating Programme

The Experience Rating Programme is for medium to larger businesses who have paid more than $10,000 in annual Work Account levies in each of the last three years.  The programme ensures the levy charged to a business reflects how well, compared to similar businesses, it:  

  • reduced the incidence of injury to its workers   
  • supported injured workers to return to work.   

To be able to fairly compare businesses, every business is allocated a classification unit (CU) that best represents its primary activities.  CUs with a similar frequency and severity of injury are grouped into one Levy Risk Group (LRG).  The Work Account levy for a business, before any experience rating adjustment (i.e. levy adjustment based on claims history), is set through the LRG the business belongs to. 

No Claims Discount Programme

The No Claims Discount Programme is for small businesses, as well as the self-employed, who have met the minimum earnings threshold in each of the last three years and pay less than $10,000 in Work Account levies annually.  Based on their claims history over a three-year period, more than 90% of these businesses currently get a 10% ‘no claims’ discount, with fewer than 5% receiving a levy increase of up to 10% and the remaining businesses receiving no levy adjustment.

No changes are proposed for the No Claims Discount Programme this year.

Levy consultation

ACC is also consulting on future levy rates, including the proposed minimum liable earnings that would apply to Experience Rating from 1 April 2022.

Provide your feedback on ACC's levy rate recommendations.

Last updated: 3 November 2021