No Claims Discount is ending

ACC has advised the no claims discount is being discontinued, because it hasn’t delivered the expected health and safety improvements and has effectively been subsidised by other businesses.

Key Changes:

• Levy invoices will no longer include the 10% discount or 10% loading based on claims history.
• You’ll first see this change reflected in the provisional invoice issued in 2026.

Experience Rating becomes self-funding

Previously, businesses outside the experience rating programme helped fund the discounts applied to businesses within it. From April 2026, only businesses in the programme will contribute to its costs.

What this means:

• Employers will see this update in their 2026 provisional levy invoice.
• Businesses in the programme will pay an additional Experience Rating Programme rate, currently 7.2%, on top of their Work Account levy.
• This will appear as a single Work Levy (ER) rate.
• This rate is separate from any loading or discount related to your business’s claims performance.

Interest on all new instalment plans

From 1 April 2026, interest will apply to all new or rolled-over levy instalment plans. Previously, three- and six-month instalment plans were interest-free, but this is changing to ensure fairness for businesses that pay their levy invoices in full and on time.

What has changed:

• Interest will be included in each instalment payment.
• The rate will be calculated using a formula aligned with wider economic interest rates.
• All instalment plans will use the same annualised interest rate.
• Longer instalment plans will result in more total interest paid.
• If your instalment plan was set up before 1 April 2026, it will keep its existing interest rate until the plan ends. For current three- or six-month plans, this means the rate remains 0%.

Late payment interest (formerly late fees or penalties)

ACC is also updating how late payment interest is calculated. Late payment interest applies when levies or instalments become overdue. The rate will be linked to the instalment interest rate, with an added margin to discourage late payments.

• Interest will be calculated daily and compounded monthly.
• To avoid additional costs, businesses should ensure payments are made before invoices become overdue.

What does all of this mean for your business?

These changes may affect your levy costs, invoicing, and payment arrangements.

To stay prepared:

• Review your ACC provisional invoice when it arrives in 2026.
• Consider how instalment interest may impact your cash flow.
• Make sure you stay on top of payment deadlines to avoid late payment interest.