Businesses are likely to have future accident compensation levies adjusted according to their safety record.

The government today announced it is consulting on how experience rating for ACC could work, with a view to introducing it from 1 April next year.

Some of the country’s larger workplaces are already experience rated, as part of ACC’s preferred partnership programme, whereby the firms effectively self-insure.

The changes will bring most of the rest of the workforce under an experience rated, regime, Minister for Accident Compensation Nick Smith said.

Companies paying more than $10,000 a year will have a discount or a loading of up to 50% based on their claims history.

About 5000 employers are in this category and some of them pay large sums – Dr Smith said some large meat companies pay over $1 million.

Smaller firms will have a “no claims bonus” or a “penalty” of plus or minus 10% of their levy if there has been more than weekly compensation claims in the last three years.

“An expected 220,000 small businesses will receive a discount under the proposed policy and approximately 1000 will pay a high-claim loading,” Dr Smith said.

The overall idea is to stop firms with good accident records cross-subsidising those with bad records.,

At present industries are rated based on the risk profile of that industry.

Firms will be made aware of where they stand compared to the rest of their industry.

Dr Smith said at this stage there are no plans to make the differences between individual businesses public but that the idea is “an open question.”

At a net level the amount in ACC levies paid should not be affected, unless – as is hoped – the number of accidents goes down.

The government may also provide ACC levy differentials for motor vehicles, although in this case the idea would be to “risk rate” rather than experience rate the levy.

This will be included as part of the levy consultations later this year, he said.