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.
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2024 levy consultation
From 11 September to 9 October 2024, we consulted with the public on proposed changes to levy rates and other related proposals. The Minister then considered ACC's recommendations, feedback from the public, and independent advice from MBIE, before Cabinet made the final decisions in December 2024.
2024 levy consultation results
Cabinet approved the following changes to ACC's levy rates and the levy system.
Levy rate changes
|
|
2024/25 levy rate |
Confirmed rate for 2025/26 |
Confirmed rate for 2026/27 |
Confirmed rate for 2027/28 |
Timing |
|
Earners’ levy rate |
$1.39 per $100 liable earnings |
$1.45 |
$1.52 |
$1.59 |
1 April each year
|
|
Average work levy rate |
$0.63 per $100 liable earnings |
$0.66 |
$0.69 |
$0.72 |
1 April each year
|
|
Average motor vehicle levy rate |
$113.94 per vehicle |
$122.84 |
$131.94 |
$141.69 |
1 July each year |
Minimum and maximum liable earnings changes (Work and Earners’ levies)
|
|
2024/25 level |
Confirmed level for 2025/26 |
Confirmed level for 2026/27 |
Confirmed level for 2027/28 |
Timing |
|
Minimum earnings |
$44,250 |
$49,365 |
$50,501 |
$51,632 |
1 April each year |
|
Maximum earnings |
$142,286 |
$152,790 |
$156,641 |
$160,244 |
1 April each year |
Work Account changes
|
Work Account change |
Timing |
|
Increase the medical cost threshold in the Experience Rating product from $500 to $750 |
1 April 2025 |
|
Introduce a new classification approach for professional sports and ballet |
1 April 2025 (phased over three years for businesses facing significant levy increases) |
|
Introduce a new classification for home improvement stores |
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 |
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 |
1 April 2026 |
|
Remove No Claims Discount and remove the full subsidisation of Experience Rating product |
1 April 2026 |
Motor Vehicle Account changes
|
Motor Vehicle Account change |
Timing |
|
Reclassify battery electric vehicles and diesel plug-in hybrid electric vehicles |
1 July 2025 |
|
Close the Fleet Saver audit programme
|
1 July 2025 closed to new entrants 30 June 2029 programme closed |
|
Introduce 0-250cc, 251-750cc, and 751+cc motorcycle sub-classes |
1 July 2026 |
|
Increase the levies for motorcycles to the equivalent of 37% of motorcycle injury costs |
1 July 2026 increase from 28% to 33% 1 July 2027 increase from 33% to 37% |
|
Introduce a 25% discount for riders who have successfully completed advance rider training (equivalent to a RideForever Gold course) |
1 July 2026 |
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