At A Glance:

Current Rate average 2001-2002 per $100 of payroll	New Average Rate 2002-2003	ACC Recommended Rate	Department of Labour Recommended Rate
$1.35	$1.75	$1.69	$1.70 - $1.80

General

• Self-employed Work Account Levy meets the costs of all self-employed work injury claims from 1 July 1999.
• This levy has 2 components:
  • an income-benefit portion to fund income-related benefits (weekly compensation) and
  • a non-income benefit portion to fund non-income related benefits (independence allowance, medical treatment costs, social rehabilitation).

• 550 risk rated levy classes based on services provided or goods produced. Each class has a levy rate used to determine the self-employed person payable levy, based on liable earnings

Reasons for Increase

• Recent increases in claim frequencies and costs of managing claims mean the average levy for 2002/03 will increase. The need to build reserves in this account also impacts on the increased levy.

History of the Account

• The account is new (since 1999) and has limited historical evidence to draw on.

ACC CoverPlus Extra

• Allows self-employed some flexibility of cover for personal injuries.
• ACC standard cover injured self-employed who need weekly compensation receive up to 80% of the previous year's liable earnings. This standard cover may not suit people with fluctuating incomes eg, farmers.
• ACC CoverPlus Extra allows self-employed to agree, with ACC, the level of weekly compensation they would receive if they were unable to work.
• ACC CoverPlus Extra up-take rate has significantly increased.