Levy Consultation: What you told us

From 11 September to 9 October, we consulted with the public on our 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.

Thanks very much to everyone who made a submission, we appreciate you taking the time to give us your feedback. 

How much feedback did we receive?

Over the levy consultation period, we received nearly 8,700 total submissions and 6,925 sentiments (agree/disagree). 

Most of the feedback we received relates to the motor vehicle account and motorcycle proposals, with 6,515 responses on this particular topic.

Of the feedback received, 94 per cent of respondents disagree with the proposed changes to the motor vehicle account, and 90 per cent disagree with increasing motorcycle owners’ contribution to the cost of injuries.

We received much more positive feedback for the proposed changes to the work account, including reclassifying professional sports and home improvement stores.

What were the main feedback themes?

Feedback on most of the proposals was mixed or negative.
 
One of the consistent themes we heard is the proposed increases are too high. 

Some of the reasons cited include cost of living pressures, particularly on small businesses, a view that ACC is currently delivering a substandard service, or that increases are unfair on groups that have already had their levies raised following past consultations. 

There was a strong theme that ACC should better target proposed levy increases to drivers of risk and risky behaviour. 

We also heard some concerns about the evidence and data used to inform the proposals, such as who ACC includes in motorcycle injury statistics, and what evidence supports using motorcycle capacity (CC) as a predicter of risk.  

But positive feedback came through for the new classification units for home improvement stores and professional sports, with respondents saying the changes are a better reflection of the risks in these industries and make levies simpler for businesses.

What happens next?

We’re now reviewing all your feedback and will take it into consideration before we present our recommendations to the Minister for ACC.

The Government will then make the final decisions on how the levies and the levy system will change for the next three years. 
 
The Government’s decisions are expected in November and will come into effect from April 2025.