The NZ Government has announced plans to promote improved workplace safety by moving to align accident compensation levies with the actual risk.

Accident Compensation Corporation (ACC) Minister Nick Smith last week announced a discount and loading system that will apply to workplace levies from April 1 of next year.

Firms with poor safety records will pay more, while safe workplaces will be rewarded with discounts.

The NZ Government is aiming to clean up the country’s relatively poor workplace safety record, with one worker killed and 600 injured in a typical week.

Under the changes, employers paying more than $10,000 a year in ACC workplace levies will face a discount or loading of up to 50% based on their claims history.

For smaller employers, a simpler no-claims bonus and high-claim loading will apply.

Accident experience rating previously applied on ACC accounts from 1972 until the last Labour Party government repealed the approach in 2000. Dr Smith says the existing averaged levy system means firms with good workplace safety are carrying the cost of others.

“This detracts from the incentives for improving safety,” he said. “The new system of accident experience rating will reward those businesses that have safer work and return to work practices.

“The Government’s ambition with these changes is to reward excellence in workplace safety and achieve a stronger focus on reducing injuries at work.”

The corporation is expected to take on more staff as a result of the planned changes, after making 70 staff redundant last year.