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ACC earners' levy on income from personal effort
Income that you receive from personal effort is liable for ACC earners' levy. This levy is charged to cover the cost of rehabilitation and compensation following non-work related injuries.
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
- free or discounted shares received under an employee share scheme.
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.
|
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 (GST-inclusive) |
Maximum income earners' levy charged on - see "Note" below | Maximum levy anyone can pay |
|---|---|---|---|
| 1 April 2018 to 31 March 2019 |
$1.39 per $100 (1.39%)
|
$126,286
|
$1,755.37
|
| 1 April 2017 to 31 March 2018 |
$1.39 per $100 (1.39%)
|
$124,053
|
$1,724.33
|
| 1 April 2016 to 31 March 2017 |
$1.39 per $100 (1.39%)
|
$122,063
|
$1,696.67
|
| 1 April 2015 to 31 March 2016 |
$1.45 per $100 (1.45%)
|
$120,070
|
$1,741.01
|
| 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
|
Note
For self-employed income:
- For the 2018 tax year, the maximum that earner’s levy is charged on is $122,063 and the maximum levy payable is $1,696.67.
- For the 2019 tax year, the maximum that the earner's levy is charged on is $124,053 and the maximum levy payable is $1,724.33.
See the previous years' ACC levy and maximum liable income rates
Contacts for more information
If you need more information about 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 |
