Proposed $171 million reduction in ACC work levies

02 Oct 2015 9:30 AM | Administrator . (Administrator)


The ACC Board is proposing levy reductions worth $450 million in 2016/17, spread across work, earners’ and motor vehicle levies.

“The proposed reductions are coming from the Board’s new funding policy of each levied account targeting assets within a band of 100 and 110% of the account’s liabilities,” says ACC Minister Nikki Kaye.

The proposed reductions are $171 million to work levies, $61 million to earners’ levies and $218 million to motor vehicle levies.

“The Government signalled a desire to remove residual levies at the same time as levies reduce, to offset increases to work levies paid by businesses in some industries,” says Kaye.

“The combined effect of removing the residual levy and today’s proposed work levy reductions would see around 75% of businesses paying a lower work levy,” she says.

“The levy could reduce by as much as one-third for some. Around 25 per cent of businesses would see their work levy increase, as a result of paying a fairer share of injury costs in their industry,” says Kaye.

“There will also be a small reduction in the earners’ levy paid by all salary and wage earners, to fund out-of-work injury costs. Final levies will be confirmed after the consultation process,” she says.

“Other issues that will be consulted on by ACC on my behalf include routine changes to classification units,” says Kaye.

“These identify a business’s activity and are used to calculate work levies, and liable earnings limits used to calculate levies,” she says.

“Levy consultation is an opportunity for New Zealanders to share their views about levies and any other aspect of the ACC scheme, and I encourage everyone to have their say,” says Kaye.

See ACC’s levy consultation at

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