The levy setting process
We want to make your levies as fair as possible. We review levies once every three years and make changes to reflect this. All New Zealanders are paying levies and everyone has the chance to give feedback on the proposed changes we’re thinking of introducing.
From start to finish the levy setting process takes a whole year. It happens in six key stages:
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Calculating new levies
As part of managing a successful Scheme for accident prevention, care and recovery, we consider the long-term nature of funding some claims (ie supporting injuries that impact people for a long time). We also need to provide levy payers with reasonable stability of levy rates over time.
To support this, the Government has set a funding policy statement which defines how we should calculate levies.
Our Actuarial Team calculates proposed levy rates using factors such as claims we’ve received from New Zealanders, health care costs and investment returns. We then prepare proposal documents detailing what we’re thinking about changing and why. -
Gathering feedback
We publish our proposals and invite New Zealanders to give their feedback during levy consultation. This feedback period is open for a minimum of 28 days.
Help shape your ACC levies -
Reviewing submissions
Once consultation closes we review your submissions. We then provide advice to the Minister for ACC and announce the recommendations. -
Recommending new levy rates
Your views can influence the final rates set by the Government and inform future proposals to improve the levy system.
The Minister for ACC considers your feedback and reviews the recommended rates. They may also seek independent advice from Ministry of Business Innovation and Development (MBIE) and the Treasury. -
Confirming new levy rates
The Government will make the final decision on any levy changes. They are not obliged to accept the levy rate recommendations provided by us, or by MBIE and the Treasury.
Cabinet approves levy rates for the coming levy year. -
Putting the new levy rates in place
Levy regulations are passed and come into effect from 1 April (Work and Earners’ Account) and 1 July (Motor Vehicle Account) in the following year.