Further cuts to ACC levies

Further cuts to ACC levies

ACC must collect sufficient funds to cover the costs of all current and past claims. In 1999 the Government realised funding was insufficient to cover on-going costs of pre-1999 claims and therefore, introduced a ‘residual levy’ to build up adequate funds.

The residual levy has been incorporated into the work levy whereby, at present it comprises two components; (1) a current portion and (2) a residual portion. Each year, the current portion of the work levy is adjusted to reflect the most recent injury experience within the business’s specific industry. The residual portion however, has been fixed since 2005 and is based on the remaining cost of pre-1999 claims.

Following a recent valuation of ongoing claims costs, the Government has proposed to remove residual levies in 2016/2017, which could result in 75% of businesses paying a reduced levy.

Once the residual levy is removed, work levies will be fully calculated on more recent injury trends and industries with increased injury rates will pay higher levies (and vice versa), i.e. those who operate in industries with higher injury costs.

Featured Posts
Search By Tags

Lowthers Chartered Accountants offer professional accounting and taxation services, business advice in Auckland, Tauranga and Christchurch. 



Level 10, The Dorchester Building,

34 Shortland Street, Auckland 1010


PO Box 1963, Shortland Street, Auckland, 1140


T: 09 921 0232

F: 09 921 0233

E: auckland@lowthers.co.nz



Level 1, 89 Grey Street, Tauranga 3110


PO Box 9422, Greerton, Tauranga 3142


T: 07 928 4818

F: 07 928 4820

E: tauranga@lowthers.co.nz



52C Mandeville Street, Riccarton, Christchurch

PO Box 29394 Riccarton, Christchurch, 8440


T: 03 943 2232

E: administration@loke.co.nz

W: www.lowthersch.co.nz


CALL US TOLL FREE:  0800 43 43 33  

(Auckland and Tauranga only)

© 2016 Lowthers Chartered Accountants Ltd. Designed and developed by Yanina Mashkina Design Ltd