We propose, from 1 April 2025, increasing the minimum cost threshold for claims to count towards your experience rated work levy to $750.
The current threshold
The Experience Rating programme is for employers paying $10,000 or more in work levies. Once you’re in the programme, you could get a discount off your levy, or you could pay more, depending on:
- the number of weekly compensation days paid for each claim
- the number of work-related injury claims with total medical and treatment costs over $500.
We assume that costs for claims above the threshold are more likely to be preventable than those below. Any claims with total costs below the threshold do not affect your work levy.
Medical and treatment costs are increasing. The threshold, which was last set in 2011, does not reflect increased costs.
ACC proposes to increase the threshold for medical and treatment costs from $500 to $750.
Impacts of the proposed increase
Adjusting the threshold to $750 will affect about 10% of employers. They will have a change to their Experience Rating band — either one band higher or lower. This band change will affect the discount or loading we apply to their work levy, but the effect will be small.
The new threshold will mean that approximately 15% of claims will impact the business’s experience rating. These claims are usually more severe and represent approximately 75% of total medical and treatment costs (consistent with the intent of the programme).
