Levy risk groups

Businesses pay different levy rates depending on the level of risk in their primary business activity (the risk of injury in relation to the type of work employees are doing).   

After assessing a business’s risk, businesses are allocated into one of 539 classification units (CUs).  The CUs are grouped into one of 142 levy risk groups (LRGs) based on injury risk profiles (the frequency and severity of injury, plus how long it takes for an injured worker to return to work - represented by the estimated total cost of claims, compared to wages paid). 

While we’re recommending that the average Work levy is decreased next year with small increases in the following two years, levy rates for each CU are also updated to reflect any changes in their claims patterns. 

This will mean levy rates for some businesses will increase when the average rate is decreasing or decrease when the average rate is increasing to avoid large changes in levies but allow CUs to move towards a fair rate and better reflect their risk profile over time.

Should we decrease the average levy for work injuries?