Proposed 2017/18 and 2018/19 levy rates for Levy Risk Group 941

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.
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
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.
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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.
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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.
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