ACC Residual Levy
ACC levy consultation was completed for 2019-21 levies years and changes approved by Government. Overall the average work levy is decreasing 7%. However, there are a number of changes that have increased risk and cost on the standard ACC scheme.
The key ACC changes that could affect your organisation are:
- No replacement discount products for the discontinued WSMP. The final discounts will cease as of 31/3/19
- Changes in Experience rating. ACC will be increasing the penalties from 75% to 100% of standard levy
- Increases in levy rates for road freight, and road construction classifications
- Majority of larger New Zealand employers will pay more ACC from 1 April 2019 as there is a small reduction in average levy rate (7%) but loss of WSMP discounts of up to 20%
- ACC implementing new changes to managing claims. A large number of claims will result in injured workers self-managing claims, less opportunity for employers to be involved in decision making of claims, and likely removal of dedicated claims managers assigned to large employers.
ACC’s only other product choice is tailored for large employers. It is a self-insurance product called the Accredited Employer Programme (AEP). AEP allows employers to reduce their financial risk, receive significant discounts (up to 90%) and provide improved rehabilitation outcomes and support for injured employers.
With recent changes, ACC’s AEP product is now a more attractive option for large employers.
If you want to discuss how these changes may affect your organization, please contact us.