Recommendations to the Minister

Should we change how community cricket associations are classified?

This proposal recognises there’s less risk of injury playing community cricket compared to professional cricket and would see community cricket moved into its own levy risk group with a lower levy.

How cricket is classified

NZ Cricket have told us the way we classify them doesn’t reflect their area of the sporting sector.  The changes we propose will result in levies that better reflect their risk profile.

Proposed changes for cricket

The sporting sector is divided into four levy risk groups (LRGs). The lowest LRG reflects community activities such as club administration and coaching. The highest LRG is for professional athletes in contact sports and those who support these sports.

Domestic cricketers, who play at a professional level, are currently grouped in the same classification unit (CU) as community cricket organisations with a separate CU for international cricket professionals.

However, given the risk profile of domestic cricket professionals is now similar to that of international cricket professionals, the Community and Domestic cricket CU was moved to a higher Levy Risk Group to reflect their combined risk. NZ Cricket raised concerns that community cricket associations do not have the same risk profile as either domestic or international cricket professionals. 

In recognition of this, we're proposing all cricket professionals (at both domestic and professional level) are grouped in the same CU, remaining in their current medium-high levy risk group.

Community cricket associations would then have their own CU and move to a lower-risk group, meaning they would pay a lower levy rate in line with their recent claims history.

 

What it might mean for you

This proposal would lower the levy rate for the 45 organisations and individuals responsible for community cricket from $2.67 in 2021/22 towards a new rate of $0.57 by 2024/25.

All cricket professionals (at both domestic and international level) would continue to pay a similar levy rate.

The scope of this proposal relates only to people who are employed in the sporting sector, such as professionals or club administrators. Injuries from recreational sport (where players are not paid to play) are funded separately and are not impacted by this proposal.

 

How it would work

CU number CU name Change
93174 'Sport and physical recreation - community cricket' Move this CU from levy risk group (LRG) 917 ‘Equine and Sporting Activities’ (medium-high risk group) to LRG 911 ‘Sporting and Recreational Activities’ (lower-risk group).
93194 'Sport and physical recreation - professional cricket' No change - this CU stays in current LRG 917 ‘Equine and Sporting Activities’ (medium-high risk group).

 

1 Sep 2021
Open for feedback

Tell us what you think about our proposals.

5 Oct 2021
Consultation closes

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

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.

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.