For the 2017 to 2019 levy period, we’ve received your feedback on our proposal to decrease the average Work levy from $0.80 to $0.72 for every $100 – a 10% decrease.
Your Work levy covers the cost of accidents that happen while you or your employees are at work.
If you’re a business owner your Work levy is based on:
- your employees’ risk of injury at work
- the wages you pay to staff.
If you’re self-employed your Work levy is based on your:
- risk of injury at work
Your income or employees’ wages
When calculating your Work levy we need to know your income or your employee’s wages. We get this information from Inland Revenue through your tax return and your Employer Monthly Schedule. This is then used to calculate your weekly compensation if you or your employee is injured and unable to work.
Industry and business activity
If you’re a business owner or self-employed you’ll choose a Business Industry Classification (BIC code) based on your business activity – we then receive this from Inland Revenue.
Your BIC code is used to group businesses with similar ‘risk characteristics’ into classification units (CUs) – this decides the levy rate you pay and shares the cost of injury fairly. For example, a professional athlete has a higher risk of injury at work than an office worker, so an athlete will have a different classification unit and pays a higher Work levy.
Sometimes an industry is too small to be classified by itself or we might not have enough information to calculate their risk accurately. To allow for this, we group business activities together that have similar levels of risk – so we can spread the cost of injury more fairly.
Feedback and decisions from last year
Some of you felt your classification unit didn’t reflect your level of risk. For example, we had lots of submissions from translators who thought their classification unit should be changed to ‘CU78630: document preparation services’ as it describes their business more accurately.
In response to this, we reviewed their assigned BIC code and propose moving this to the CU they suggested. This means translators will now pay a lower levy rate that reflects their level of risk.
Your feedback can make a big difference – it helps us get your Work levy rate right.
Our proposed changes
For the 2017 to 2019 levy period we propose to reduce the average Work levy from $0.80 to $0.72 for every $100 you pay your employees or your income if you’re self-employed – that’s a 10% decrease.
Lowering the ‘average’ Work levy
Overall, and for a majority of people or businesses the Work levy is going down, but this is an average decrease. There are different levy changes depending on your industry and classification unit – so your individual Work levy could change by more or less.
Download the proposal below to check the proposed levy rate for your classification unit, then let us know what you think about the changes.
Find out more
Work Account proposal
Work levy rates proposal
Work levy rates – Coverplus Extra
Levy classification and levy risk groups
Partnership plan discount rates
Liable earnings and capping
The Accredited Employers Programme