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ACC Levy Consultation & the impact for Accredited Employers

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ACC Levy Confirmation & impacts for Accredited Employers

Employers in ACC’s Accredited Employer Programme (AEP) are effected by the ACC Minister’s announcement on the ACC Work Levy confirmed changes from 1 April 22 – 31 March 2025.

Employers in AEP will see risk slightly increase but this is offset by the fact they are exempt from experience rating and importantly their results have been significantly better than standard ACC.

Despite minor changes the discounts within the AEP, the AEP can provide protection from ACC’s deteriorating claim performance and reduce the impact of future levy increases.   

The Accredited Employers Programme (AEP) is best suited to large employers who pay ACC levies of more than $120,000 per year 

Accredited Employers can qualify for reductions of up to 90% in their Work levies. They can choose to join one of two plans: 

  • Partnership Discount Plan (PDP)
  • Full Self-Cover Plan (FSC)

Summary of changes to AEP discounts

The levies payable for the PDP plans generally reduce in line with the recommended decrease in the average Work Account levy. For the FSC plan, there is an average increase of 15% in levy charged driven by an expected increase in claims hitting stop loss cover and high cost claims cover limits which has increased the cost of those components of the levy. 

The risk: proposed changes to stop loss limits

Stop-loss cover protects Accredited Employers against unexpectedly high total injury costs during a cover period e.g. if there are a high number of work-related accidents within a very short timeframe.

The proposed decrease to the Work levy means the percentages increase from a minimum of:

  • 140% to 160% of standard levy in the FSC
  • 73.6% to 82.7% in the PDP 1 year plan
  • 86.4% to 97.1% in the PDP 2 year plan 

Despite minor changes to discounts the AEP can provide protection from ACC’s deteriorating claim performance, reduce the impact of future levy increases, and significantly outperform ACC with respect to lower claim costs and reducing days lost due to injury.

We are here to help

If you want to discuss these changes and how they will impact your business, please contact Fergus Rolston or Rachel Doody.