Levy results
We consult levy payers on proposed levy rates and other levy related proposals. We consider all feedback received and present our recommendations to the Minister for ACC. Here are the results from the latest levy consultation.
On this page
2024 levy consultation
Recommendations to the Minister for ACC for levy rates and other related proposals
From 11 September to 9 October 2024, we consulted with the public on proposed changes to levy rates and other related proposals. Taking this feedback into consideration we’ve made recommendations to the Minister for ACC.
The Minister will review this advice and make final recommendations to Cabinet before the end of the year.
Recommendations for levy rates and other related proposals
You can also view these recommendations below:
Recommendations on levy rates 2024
Levy rates |
||||
What was proposed |
ACC recommendation |
|||
Levy (excluding GST) |
2025/26 |
2026/27 |
2027/28 |
Introduce the proposed increases in aggregate levy rates as proposed. |
Aggregate Motor Vehicle levy rate per vehicle. |
$122.84 |
$131.94 |
$141.69 |
Introduce the proposed increases in aggregate levy rates as proposed. |
Earners’ levy rate per $100 liable earnings |
$1.45 |
$1.52 |
$1.59 |
Introduce the proposed increases in aggregate levy rates as proposed. |
Aggregate Work levy rate per $100 liable earnings |
$0.66 |
$0.69 |
$0.72 |
Introduce the proposed increases in aggregate levy rates as proposed. |
Recommendations on work account proposals 2024
Work Account proposals |
||||
What was proposed |
ACC recommendation |
|||
Remove No Claims Discount and reduce subsidisation of Experience Rating product either in part or in full. |
Remove No Claims Discount and remove the full subsidisation of Experience Rating product from 1 April 2026. |
|||
Increase the medical cost threshold in the Experience Rating product from $500 to $750. To come into effect from 1 April 2025. |
Introduce the proposed changes from 1 April 2025. |
|||
Increase the minimum and maximum liable earning thresholds in line with projected wage inflation. To come into effect from 1 April 2025. |
Introduce the proposed changes from 1 April 2025. |
|||
Introduce a new classification approach for professional sports and ballet. To come into effect from 1 April 2025. |
Introduce the proposed changes in the professional sports and ballet sectors from 1 April 2025. Phase the changes in over three years for businesses facing significant levy increases. |
|||
Introduce a new classification for home improvement stores. To come into effect from 1 April 2025. |
Introduce the proposed changes from 1 April 2025. |
|||
For Accredited Employers, update the product discounts, admin fee, bulk-funded costs fee, and stop-loss and high-cost claim fees to reflect changes in the Work Account experience. To come into effect from 1 April 2025. |
Introduce the proposed changes from 1 April 2025. |
|||
Introduce a new methodology for calculating payment plan interest, credit interest and penalty interest; and extend interest payable on payment plans to the 3-month and 6-month plan options, using Reserve Bank’s Floating First Mortgage New Customer Housing Rate as base rate. |
Use the Official Cash Rate as the base rate for the payment plan interest rate, penalty rate and credit interest calculations.
Introduce the proposed change from 1 April 2026. |
|||
Increase the minimum and maximum liable earning thresholds in line with projected wage inflation. To come into effect from 1 April 2025. (Also applies to Earners’ Account). |
Introduce the proposed changes from 1 April 2025. |
Recommendations on motor vehicle account proposals 2024
Motor Vehicle Account proposals |
||||
What was proposed |
ACC recommendation |
|||
Introduce 0-250cc, 251-750cc, and 751+cc motorcycle sub-classes. To come into effect from 1 April 2025. |
Introduce the proposed changes from 1 July 2026 to coincide with levy discounts for advanced rider training. |
|||
Increase the levies for motorcycles to the equivalent of 37% of motorcycle injury costs (currently 28%). To come into effect from 1 April 2025. |
Introduce the proposed change in the following steps: From 1 July 2026 28% to 33% From 1 July 2027 33% to 37%. |
|||
Introduce a 25% discount for riders who have successfully completed advance rider training (equivalent to a RideForever Gold course). To come into effect from 1 July 2026. |
Introduce the proposed change from 1 July 2026. |
|||
Close Fleet Saver product to new entrants from 1 July 2025. |
Introduce the proposed change from 1 July 2025. |
|||
Remove the levy discount for Battery Electric Vehicles and diesel Plug-in Hybrid Electric Vehicles. To come into effect from 1 July 2025. |
Introduce the proposed change from 1 July 2025. |
2021 previous consultation
After considering ACC's recommendations, feedback from the public, and independent advice from MBIE, the Minister for ACC made her final recommendations to Cabinet in November 2021.
2021 levy consultation results
After considering ACC's recommendations, feedback from the public, and independent advice from MBIE, the Minister for ACC made her final recommendations to Cabinet in November 2021.
Cabinet has approved the following levy rates.
Levy type | Current 2021/22 levy rate | Confirmed rate for 2022/23 | Confirmed rate for 2023/24 | Confirmed rate for 2024/25 |
Average motor vehicle levy rate | $113.94 per vehicle |
$113.94 |
$113.94 |
$113.94 |
Earners' levy rate | $1.21 per $100 wages |
$1.27 |
$1.33 |
$1.39 |
Average work levy rate | $0.67 per $100 of payroll |
$0.63 |
$0.63 |
$0.63 |
ACC consulted on proposed levy rates and other levy related proposals for the 2022/23 to 2024/25 levy period.
Levy consultation was open from 1 September to 5 October 2021 and we received 1,273 submissions during the period. This included 397 structured submissions providing detailed feedback on individual proposals, and 33 significant, long-form submissions received by email.
The Funding Policy Statement for ACC, set by the Government, determines how ACC calculates the aggregate, or “average”, levy rates for each of the levied Accounts. This means we cannot recommend a different aggregate rate or funding path to the Minister for ACC.
The Ministry of Business, Innovation & Employment (MBIE), as lead advisors to the Government on ACC Scheme design, have the role of presenting alternative funding paths to the Minister. ACC reviews all public submissions and reports on the consultation feedback to the Minister and to MBIE.
Since we last reviewed levies in 2018, the volume and costs of claims made (risk profile) for many groups of businesses and vehicles types has changed. Some of these have shown improvement, while others have been more expensive.
Cabinet has agreed to adjust the individual levy rates for businesses and vehicles to reflect the changed risk profiles. This will mean the rates charged to businesses and vehicles may not reflect the change in average levy i.e. some businesses and vehicle types will experience increases in levies and others will receive larger decreases in levies, even though the average levy is going down or not changing.
New levy rates take effect this year, from:
- 1 April 2022 for the work and earners’ levies
- 1 July 2022 for the motor vehicle levy.
The other levy-related proposals that impact businesses, including changes to the Experience Rating Programme, updates to specific classification units, and updating the rate of Credit Interest were also approved.
Minister for ACC's levy rate announcement
Motor Vehicle levy rates from 1 July 2022
Work Account levy rates from 1 April 2022
2021 levy rate recommendations
A summary of ACC’s consultation documents for 2021.
2021 Experience Rating proposals
Contact us
If you have any queries contact us.
Email shapeyouracc@acc.co.nz