Proposed 2017/18 and 2018/19 levy rates for Levy Risk Group 941: Repair and Maintenance (low-risk group) What are the proposed 2017/18 and 2018/19 Work levy rates? The table below shows a breakdown of change from the current Work levy rates to the proposed 2017/18 and 2018/19 Work levy rates for employers and self-employed people. Levy rates are shown as a rate per $100 of wages or earnings from self-employment. All rates shown exclude GST. The column “Change due to previous year’s capping” adjusts the current rate to the base rate by removing the effect of capping. The column “Impact of average rate change” shows the movement due to the change in the average Work rate from 2016/17 to 2017/18. The column “Impact of change in relativity” shows the movement due to changes in claims experience of this levy risk group. A decrease indicates that this levy risk group’s claims experience is improving relative to the Work Account average and an increase indicates that experience is worsening relative to the average. The “Capping impact” columns show the impact of capping and minimum invoicing. Work levy rates Classification unit (CU) Rate for 2016/17 Change due to previous year’s capping Impact of average rate change Impact of change in relativity Base rate for 2017/19 Capping impact1 2017/18 Capping 1 impact 2018/19 Rate for 2017/18 Rate for 2018/19 Number Description 52620 Clothing and footwear repair $0.54 $0.01 -$0.05 -$0.08 $0.42 -$0.01 -$0.01 $0.41 $0.41 52690 Repair and maintenance (not elsewhere classified) $0.54 $0.01 -$0.05 -$0.08 $0.42 -$0.01 -$0.01 $0.41 $0.41 78330 Electronic (except domestic appliance) and precision equipment repair and maintenance $0.54 $0.01 -$0.05 -$0.08 $0.42 -$0.01 -$0.01 $0.41 $0.41 What is the claims trend in this levy risk group? The table below shows how claim numbers and costs have changed for Levy Risk Group 941 (Repair and Maintenance (low-risk group)) over the past four years. Note that: Proposed 2017/18 and 2018/19 levy rates for Levy Risk Group 941: Repair and Maintenance (low-risk group) ⓒ ACC 2016. 1 The number of claims includes entitlement claims (claims that had entitlements paid such as weekly compensation or social rehabilitation costs), and includes an allowance for unallocated claims (claims reported but not assigned to a valid CU). The total cost of claims includes all entitlement and non-entitlement costs, as well as an allowance for incurred (but not reported) claims and reopened claims. Claim costs for all years have been inflated to values consistent with projected costs for claims occurring during the 2017/18 accident year. This means that changes from year to year are not impacted by normal cost inflation and are reflective of real changes in experience for the industry/levy risk group. For levy setting purposes, where standard employers and self-employed people represent a small proportion of the total workforce in a levy risk group, we include the earnings and claim cost data from employers who are participants in the Accredited Employers Programme (AEP). 2012/2013 2013/2014 2014/2015 2015/2016 16 21 19 14 0.10 0.13 0.12 0.10 $0.53 m $0.43 m $0.73 m $0.28 m Number of entitlement claims * * 0 0 Number of entitlement claims per $ million earnings * * N/A N/A Total cost of all claims * * $0.00 m $0.00 m Number of entitlement claims Self-Employed and Number of entitlement claims Standard Employers per $ million earnings (ie not in the AEP) Total cost of all claims Employers in the AEP Note: * indicates that the figures cannot be provided for confidentiality reasons as there are fewer than three levy payers in one of the categories. What is the earnings trend in this levy risk group? The table below shows how the total earnings for Levy Risk Group 941 (Repair and Maintenance (low-risk group)) have changed over the past four years. Earnings have been inflated to values consistent with expected earnings paid for the 2017/18 year, which is more reflective of real changes in the industry. 2012/2013 2013/2014 2014/2015 2015/2016 2,112 2,203 2,203 1,958 $157.59 m $162.91 m $154.98 m $139.54 m Number of Employers 1 1 0 0 Earnings * * $0.00 m $0.00 m Number of Self-Employed and Self-Employed and Employers Standard Employers (ie not in the AEP) Earnings Employers in the AEP Note: * indicates that the figures cannot be provided for confidentiality reasons as there are fewer than three levy payers in one of the categories. Proposed 2017/18 and 2018/19 levy rates for Levy Risk Group 941: Repair and Maintenance (low-risk group) ⓒ ACC 2016. 2 Claims Costs per $100 of earnings for Employers and Self-Employed $0.45 $0.40 $0.35 $0.30 $0.25 $0.20 $0.15 $0.10 $0.05 $0.00 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 Actual 2017/2018 forecast We then add allowances for operating and injury prevention expenses plus adjustments for the over or under funding of past claims in the period up to 31 March 2017. Proposed 2017/18 and 2018/19 levy rates for Levy Risk Group 941: Repair and Maintenance (low-risk group) ⓒ ACC 2016. 3 Where do I get more information? If you have any questions about the information in this document, you can talk to your ACC Relationship Manager (if you have one) or contact us at: [email protected] Employers 0800 222 776 Self-employed 0508 426 837 Tax agents 0800 222 99 If you’d like more information on levies, visit www.acc.co.nz/levies We can also give you advice on how to prevent injuries from happening in the workplace. Just visit www.acc.co.nz/preventing-injuries We have a system for modifying the work levy based on your business’ claims history. This is called Experience Rating (ER). Please note, the rates in this document do not include any discounts/loadings as a result of ER. If you’d like more information, visit www.acc.co.nz/experience-rating Not sure how much money you should be putting away for your levies? Visit http://www.acc.co.nz/calculator to get an idea of how much your levies are likely to be. Proposed 2017/18 and 2018/19 levy rates for Levy Risk Group 941: Repair and Maintenance (low-risk group) ⓒ ACC 2016. 4
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