2021 Minister for ACC's levy-related proposals

Did you have your say on a range of proposals recommended by the Minister? 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.
Cricket organisations
Tell us what you think about our proposal to put community cricket organisations into a lower levy risk group than professional cricket organisations .
Self-employed or contractor
Do you own your own business or pay your own ACC invoices? Tell us what you think about our proposed changes that 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.

Current icon
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.

The Minister's proposals

The Minister for ACC would like your feedback on several proposals included in the 2021 Levy Consultation. 

Have your say on proposed changes to: 

  • how retail and wholesale trade businesses are classified
  • how professional and community cricket is classified 
  • how prime contractors are classified
  • the amount of credit interest payable. 

Minister of ACC proposals

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

Submissions close on Tuesday 5 October 2021. 

About classification units

All employers and self-employed people working in New Zealand pay a Work levy. This money pays for supporting injuries that have been caused by work-related accidents. 

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). 

ACC sets the levy rates for businesses at the LRG level.  All CUs in each LRG are charged the same rate.  When a CU’s risk profile no longer reflects the risk level of the LRG in which it is placed, then we look at transitioning the CU into a more suitable LRG. 

We regularly review how we classify businesses and recent claims histories to ensure the CUs reflect changes in New Zealand’s business activities. We also consider feedback we have received on what we can do better. 

As a result, we’re proposing changes to how we classify: 

  • retail and wholesale trade businesses
  • professional cricket players and clubs
  • prime contractors

Proposal for retail and wholesale trade businesses

Proposal for professional cricket players and clubs

Proposal for prime contractors

About credit interest

Credit interest is applied when the amount collected through provisional levies (invoices based on an estimate of the levies payable) is more than $1,000 higher than the final levy assessment.  

We have held the current credit interest rate of 6% consistent for several years. However, given current low interest rates in New Zealand, this rate is no longer representative of the wider market. We’re therefore proposing to change the credit interest rate which applies to levies.

Proposal for credit interest

Other proposals for consultation

ACC is also consulting on future levy rates and proposed changes to Experience Rating.

Provide your feedback on ACC’s levy rate recommendations

Provide your feedback on ACC’s Experience Rating proposals

Last updated: 3 November 2021