ACC Work Levy changes - Experience Rating adjustment
ACC are making some important changes to the Experience Rating adjustment which will affect some businesses’ ACC Work levy from next year. The changes ACC are making are the result of talking to New Zealand businesses over the last couple of years to find out if Experience Rating could be made better for business.
The changes will only affect Experience Rated businesses. A business is part of Experience Rating if it has paid an ACC Work Account levy of $10,000 or more a year, for three years in a row.
From now on, those businesses that are Experience Rated will find that their levies should more closely reflect their health and safety performance.
The changes mean that any improvements an Experience Rated business makes to its health and safety practice could influence the likelihood of being rewarded with a discount on their ACC Work Levy. Or, on the other hand, pay a higher levy when performance isn’t up to scratch. For businesses who are grouped together due to common ownership (a business group), the whole group will need to lift performance in order to influence the levy.
The changes will come into effect with government approval of the new Experience Rating regulations in early 2020. But ACC is letting Experience Rated businesses know now, as the changes will affect the calculation of their 2020/21 ACC Work levy. And any health and safety improvements a business makes now could start positively affecting their levy from 2021/22 and beyond.
ACC has put together a short video to provide you with a good overall understanding of Experience Rating, covering the changes and what they mean. There is more detailed information available on acc.co.nz/er.