Setting the average ACC levy rates for 2025/26, 2026/27, and 2027/28

Setting the levy rates involves trading off a range of competing factors, including fully funding ACC’s Accounts, levy stability, intergenerational equity, collecting the minimum amount necessary, and the public interest. 

On 2 December 2024, Cabinet confirmed the proposed levy rates outlined in the table below.

The Cost Recovery Impact Statement provides an analysis of the options considered for setting the 2025/26, 2026/27, and 2027/28 levy rates for the Motor Vehicle Account, Earners’ Account, and Work Account.

Technical proposals

A range of levy-rated technical policy proposals to improve fairness were also confirmed by Cabinet, these are detailed below and in Regulatory Impact Statements included at the bottom of this page.

Classification Units

Create a new Classification Unit and Levy Risk Group for home improvement stores; modernise the Classification Unit for professional sports and ballet; and create a new Classification Unit for those who do not employ participants.

Experience Rating Framework

Remove the No Claims Discount and cross-subsidisation of the Experience Rating framework.

Experience Rating threshold for Medical Fees and Treatment Costs
Increase the threshold for medical and treatment costs used in Experience Rating calculations from $500 to $750. 

Accredited Employer Programme Changes

Changes to a range of costs associated with the running of the Accredited Employers Programme, including administration fees, discounts, bulk-funded public health care costs, stop loss (where there is a high number of work-related accidents within a very short timeframe), and high-cost claims cover (limiting exposure to costs from a single event). 

Minimum and maximum liable earnings 

Update the maximum and minimum liable earnings to reflect movement in the Statistics New Zealand Labour Cost Index.

Interest payments

Align the interest rate used for payment plans with the Floating First Mortgage New Customer Housing Rate; use the Reserve Bank of New Zealand’s 90-day bank bill rate to set the credit interest rate for ACC; and progress new regulations setting out circumstances where interest charges on levies paid in instalments will be waived or cancelled. 

Recognising safer riders with lower levies

From 1 July 2026, introduce a 25% discount on levies to riders that have completed an advanced rider safety course (e.g. RideForever).

Cross-subsidisation to cover motorcycle claims

Increase the level of cross-subsidisation of owners of motorcycles to the cost of injuries to motorcyclists from 28% to 37% with a staged increase of 33% from 1 July 2026 and 37% from 1 July 2027.

Motorcycle Risk Groups

Introduce 0-250cc, 251-750cc and 751+cc motorcycle risk groups from 1 July 2026 to better reflect the cost of injuries increases as the engine capacity of a motorcycle increases. 

Levy portion for plug-in hybrids and battery electric vehicles

Recategorise plug-in hybrid electric vehicles and battery electric vehicles as petrol-powered and non-petrol powered vehicles respectively. 

Removal of Fleet Saver

Close Fleet Saver for entry and renewal from 1 July 2025, then completely close the programme from 30 June 2029. 

Documents