ACC levy consultation open for feedback
Our levy consultation process is open for feedback and we’d love to hear from levy payers across New Zealand. You can find out more about the proposed changes to levy rates and the levy rate system on the Shape Your ACC website.
From today, ACC is consulting on levy proposals to meet the rising costs of supporting New Zealanders recovering from injury.
Approximately 65 per cent of funding for ACC comes from levies paid by business owners, self-employed people, employees through their pay-packet, at the petrol pump or when registering a vehicle.
Every three years, we look at the forecasts of costs and volumes of claims, and propose changes to the levy rates.
We also consider other changes to the levy system to improve the way risks are assessed and to make the system as efficient as possible.
The levy consultation will take place this year from 11 September to 9 October.
The proposals in this consultation include changes to road-related levies, the classification of professional and community sports organisations and a new classification for home improvement stores.
To find out more and have your say, please go to the Shape Your ACC website.
ACC belongs to us all
“ACC is owned by all of us, for the benefit of us all,” says our CEO Megan Main.
“It’s important we’re collecting enough to cover the costs of injuries, now and in the future. We want the levy system to be as fair as possible, so the amount paid by levy payers reflects their exposure to risk from certain activities.”
As part of the levy consultation, we seek feedback from the public on proposed changes before making recommendations to the Minister for ACC and Cabinet.
The Government then makes the final decisions on how the levies and the levy system will change for the next three years.
“We make recommendations based on our obligations to make ACC sustainable,” Megan says.
“We also convey the views of New Zealanders to the Minister so they can take them into account when making the final decisions. We all have a role to play in reducing accidents, injuries and claims costs.”
The rising cost of injuries
Each year, ACC receives almost two million new injury claims. We spend around $7 billion annually in medical treatment, rehabilitation support and weekly compensation.
We also invest some of the money we receive through levies to cover the lifetime costs of injuries, so we’re not leaving future generations to pay for injuries that have already occurred.
Although we’re focused on improving our rehabilitation support and injury prevention activities, unfortunately the costs to support injured people are increasing, which is in line with international trends.
A higher proportion of injuries are requiring time off work during recovery and the length of time injured workers are off work has been growing.
The cost of services we provide to support recovery have increased significantly over the past three years. These factors combine to increase the average cost of claims.
As long as injuries keep occurring and these costs continue to rise, levy rates will also need to increase.
“The levies we currently collect are lower than they need to be to cover the forecast cost of claims we expect each year,” Megan says.
“Any recommendations for levy increases are capped to smooth out the increase.”
A sustainable future
Our approach to the levy consultation process aligns with the Office of the Auditor-General and Treasury guidance for public sector setting of levies and fees.
That guidance outlines our levies need to justifiably be built on equity, fairness and transparency.
This approach also aligns with our 10-year strategy, Huakina Te Rā. It incorporates our vision, tōnui ake nei – a future where all people, whānau and communities can thrive.
Huakina Te Rā is the command that calls ACC to action, engaging the sails of our waka into momentum towards our destination – a sustainable future where ACC works in partnership to support all people in Aotearoa New Zealand to stay safe and recover from the impacts of injury.
How to have your say
You can find out more about the proposed changes to the rates and the levy system and have your say on the Shape Your ACC website.
Remember, we all have a role to play in reducing accidents, injuries and claims costs, and we want to hear from you, so please let us know your feedback.