The residual portion of your ACC levy has been removed. The change came into effect on 1st April 2016 for the Work and Earners’ Accounts, and will come into effect on 1st July 2016 for the Motor Vehicle Account.
Previously the Work, Earners’ and Motor Vehicle ACC levies have consisted of two parts: a current portion and a residual portion. The current portion changes each year and funds the total cost of work injuries expected to occur during the financial year. The residual portion of the Work levy covers the cost of claims that were made prior to 1999 before privatisation occurred, and was a fixed amount targeted to be collected by 2019. However, the funds milestone was achieved four years ahead of time in 2015, hence the removal of it from the levies.
The current portion of your ACC levy will be adjusted to ensure that the total levies paid by employers will be enough to cover the cost of claims during that year. Increases or decreases to your levies depend on your levy risk group (or industry), and whether its claim experience has improved or worsened.