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Government Confirms 2008/09 Levy Rates

Government Confirms 2008/09 Levy Rates

Most employers will pay less in ACC levies next year, while there will be some increases for workers and motorists, says ACC Minister Maryan Street.

The government has adopted the following levy rates based on advice from ACC and the Department of Labour.

The average composite employer levy will decrease from $1.32 to $1.26 per $100 of earning.

The earner levy (paid by all earners to cover their non-work, non-motor vehicle injuries) will increase from $1.16 to $1.24 per $100 of earning.

The average composite motor vehicle levy will rise from $204.78 to $254.63. It will be split 50/50 between the petrol levy and registration fees.

All levies exclude GST and are average rates. Individual rates for industry groups may be higher or lower.

The new rates take effect in April, with the exception of the motor vehicle levy which takes effect in July.

“Increased levies generally reflect rising overall claim numbers and healthcare costs, particularly for long-term claimants for whom a greater range of services and treatments are required.”

“The motor vehicle levy rate reflects an increase in motor vehicle injuries, the relative severity of those injuries and the growing cost of treating and rehabilitating them, including the provision of home support,” said Maryan Street.

“Within the employer levy, there are distinct categories for current and pre-1999 claims (the Residual Account). Costs for the Residual Account are continuing to rise. Rather than progressively raising the annual levy for this account in coming years, I’ve opted to give employers more certainty by preparing for cost increases now via a steady levy over the coming years.”

A table is attached comparing the 2007/08 and 2008/08 ACC levy rates. More details are available at


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