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Individual income tax
Te take whiwhinga mo te takitahi

ACC earners' levy on income from personal effort

Income liable for ACC earners' levy

Income liable for earners' levy includes:

  • salary and wages (overtime, backpay, holiday pay, long service leave, bonuses or gratuities and taxable allowances)
  • shareholder-employee salaries
  • salaries to partners in a partnership
  • salary or wages to owners in a look-through company (LTC)
  • active income from a look-through company
  • income from self employment.

Income not liable for ACC earners' levy

Income not liable for earners' levy includes:

  • retirement payments
  • redundancy payments
  • non-taxable allowances
  • rents
  • interest and dividends
  • estate and trust income
  • royalties
  • income for a partnership earned by a non-active partner
  • income for a look-through company (LTC) by a non-active owner
  • jury fees
  • witness fees
  • taxable and non-taxable pensions.

How the premium is paid

Employees All employees must pay ACC earners' levy. This has been built into the PAYE tables and is deducted along with PAYE.
Self-employed Up to the year ended 31 March 2001 you calculated earners' levy in your tax return.
From 1 April 2001 onwards (the 2002 income year) ACC invoices you directly for earner's levy. We supply income information to ACC to enable them to do this.
Shareholder employees If you receive a regular salary with PAYE deducted:
  • the company deducts earners' levy as part of your PAYE.
If you receive an irregular salary with no PAYE deducted:
  • up to 31 March 2001 the company deducted earners' levy from your salary and paid it in the company tax return.
From 1 April 2001 onwards (the 2002 income year) ACC invoices the company directly for earners' levy. We supply income information to ACC to enable them to do this.

Rates of levy and maximum liable income

Earners' levy is charged at a flat rate, which can change each year. There is a maximum amount of income that earners' levy is charged on. Any amount of salary or wages earned over this maximum isn't liable for earners' levy.

The maximum rates for each year are:

Income year Earners' levy rate Maximum income earners' levy charged on - see "Note" below Maximum levy anyone can pay
1 April 2014 to
31 March 2015
$1.45 per $100 (1.45%)
$118,191
$1,713.76
1 April 2013 to
31 March 2014
$1.70 per $100 (1.70%)
$116,089
$1,973.51
1 April 2012 to
31 March 2013
$1.70 per $100 (1.70%)
$113,768
$1,934.05
1 April 2011 to
31 March 2012
$2.04 per $100 (2.04%)
$111,669
$2,278.04


 

Note

For self-employed income, the maximum that earner’s levy is charged on is $116,089 and the maximum levy payable is $1,683.29 for the 2015 tax year.

See the previous years' ACC levy and maximum liable income rates

Contacts for more information

If you require more information regarding ACC earners' levy please contact ACC:

For ... call free on ... or email/fax ...
employer levies 0800 222 776 business@acc.co.nz
Freefax: 0800 222 003
self-employed levies 0508 4COVER
(0508 426 837)
business@acc.co.nz
Freefax: 0800 222 003
agents and financial advisors' queries 0800 222 991 business@acc.co.nz
Freefax: 0800 222 003
claims 0800 101 996 claims@acc.co.nz

 


Date published: 31 Mar 2014

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