ACC
- Business Central
- Oct 23, 2024
- 1 min read
Updated: Nov 5, 2024
The levy consultation process for the next three years has concluded. The story from ACC reveals increasing claims rates across all accounts. Rehabilitation performance (return to work) outcomes are not good, health (treatment) costs have increased and the return on ACC’s huge investment fund declined.
This position is not sustainable for the current ACC system, and it has a proposed levy increase to all accounts to mitigate the current position.
For Employers (the Work account), the proposed average increase will be:
2025/26 Current $0.63 to $0.66 per $100 of payroll
2026/27 $0.69
2027/28 $0.72
Some subsectors within ACC levy groups may well be in for larger increases depending on the sectors’ accident (claims and cost) performances.
The Earners’ Account (employees paid by PAYE) is to increase from $1.39 to $1.45 and then $1.52 by 2027/28, an average of 4.83%.
The Motor Vehicle account levy is also due to increase. The rates will change from $113.94 to $122.84, then to $131.94 and finally $141.69 in 2027/28.
The scheme is under significant pressure, with increasing costs, injury claims outpacing population growth and poor return-to-work timeframes. It’s taking longer and costing more to get people back to work.
Employers are urged to reduce injury accidents at work and push for a prompt return to work for injured employees no matter where the injury occurred.