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ACC’s Experience Rating

A recent audit of the MyACC records revealed that many New Zealand businesses are currently being penalised by ACC through the Experience Rating system, meaning they are paying an extra fee on top their annual ACC levy - some are paying a whopping 75%. Despite this being a common experience, it doesn't have to be this way.

What is Experience Rating?

  • Experience Rating takes into account a business’s ACC claims history when setting its levies. It works in the same way as your car insurance where no claims leads to a discount, and claims leads to an increase in your premium, a 'loading'. 

  • Employers who have lower-than-average injury rates, with better-than-average rehabilitation or return to work rates, may receive a discount on their ACC work levy. Those with worse-than-average claims experience may receive a loading on their levy.

  • Your starting point is not zero.  Rather, if you have a perfect record you will typically be enjoying a discount.  So when you have a penalty you also need to factor in the lost discount.

  • If a worker has more than 7 days off, or the medical fees costs ACC more than $500, you may get a loading on your ACC bill. 

  • The loading (or discount) will not come into effect for two years and will affect your invoice for three years after that.

  • The higher the loading the more ACC is involved in your business. 

  • The maximum loading can be up to 75%.

Case study: 

Here is an example of what Experience Rating (ER) with a 30% loading could look like for a business with an annual ACC levy fee of $36,583. 

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Please note: this is for the work levy only.

 

How we help businesses like yours

We are one of the few, if not the only, company outside of ACC to have access to a calculator specifically designed to calculate Experience Rating. With this, we can predict your 2023 rating based on a number of scenarios.

We can provide you with a detailed report which tells you the following: 

  • how you compare to other businesses with the same levy code and what that has cost you in dollars

  • what your actual rating is and where you sit in the Experience Rating band

  • what your savings could look like for 2023

  • a list of all of your injuries types which shows you the most common injury for your business

  • injury numbers per location (if applicable)

  • recommendations for lowering the Experience Rating


Are you ready to learn about why you are being penalised and how to stop it? 

Get in touch with or Sue Walton sue@managecompany.co.nz and 027 210 4918.


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