The annual 2017 ACC Levy Consultation is underway with ACC seeking feedback on a number of proposals covering the Work, Motor Vehicle and Earners’ Accounts. ACC are also seeking comment on their approach to injury prevention, some suggestions on the future of their Workplace Incentive Programmes, and the overall customer experience.
Key features of the changes proposed impacting employers include:
- The move to the biennial setting of levy rates
- Reductions in the average levy rates for the Work Account (10%) and Motor Vehicle Account (13%)
- A small increase in the Earner Levy (3%)
As part of the Consultation process, ACC is requesting feedback on the replacement for the Workplace Safety Management Practices (WSMP) programme. ACC has determined that WSMP doesn’t align with current legislation and is not fit for purpose.
As a result the WSMP programme will be discontinued from 1 April 2017, with no new employers being admitted to the programme after this date. Discounts are able to be applied through to June 2019 at the latest. ACC is expecting an increase in audit applications as a result of this decision and is requesting that audit applications are received by 31 October, to ensure that applications can be processed before the cut-off date of 28 February 2017.
The Work Account average levy is proposed to reduce from $0.80 to $0.72. The average Work Account has experienced a 2% increase in the cost of claims (from $0.66 to $0.67) and an increase in scheme costs ($0.25 to $0.26). However, these increases are more than offset by a negative funding adjustment necessitated by the current funding level of the Account being significantly above the 105% funding target set by Government.
Further details regarding each of the changes proposed by ACC can be found at www.shapeyouracc.co.nz
The consultation period closes on October 19th. Feedback on each of the proposed changes can be made directly through the www.shapeyouracc.co.nz website.
Should you wish to discuss how the proposed levy and scheme changes could impact your business, please contact us on 0508 333-999 or lodge an enquiry here and a member of our team will be in contact.
