Tornados & ACC Levies

Tornados and ACC Penalties
If a worker gets hurt, or worse, gets killed by a tornado, your ACC levies will be directly impacted. You will get penalties on your levies that last for three years. Any days off resulting in weekly compensation will result in ACC penalties up to 100% of your levies. If a fatality, your levies will go up by 20% straight away.
They shouldn't though!
In 2014 we got ACC to recognise the Hobsonville tornado that sadly took the lives of three men as an Adverse Event (Act of God) which the legislation states does not impact your ACC levies.
So what?
ACC is not proactive in escalating this to the Minister of ACC unless pushed. NIWA states that on average, there are around 7-10 moderate to strong tornado events reported in New Zealand each year. Fatalities happen with recent cases including Wiri (Auckland) June 2021 (one death); Hobsonville (Auckland) in December 2012 (three deaths); Albany (Auckland) in May 2011 (one death); and near Waitara in August 2004 (two deaths). On top of that there are numerous injuries.
Sue Walton and I specialise in this space at Manage Company. We know the ACC legislation and know it well - all for the benefit of employers.