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Industry guidelines Ngā aratohu ahumahi

Tax on ACC personal service rehabilitation payments for agencies

Since 1 July 2008, tax has been deducted from the following personal service rehabilitation payments before they are made:

  • attendant care
  • home help
  • childcare
  • attendant care services related to training for independence
  • attendant care services related to transport for independence.

Find out if your payments will have tax deducted before they are made

If ... then ... Note
you operate as a resident labour hire business you can choose the rate of tax you want deducted provided it's not below 10%. Otherwise the standard rate of 10.5% will apply. You'll need to complete a Tax rate notification for contractors (IR330C) to advise the rate you want deducted or the ACC form How would you like us to pay for your care (ACC84). If you don't provide this to ACC before your first payment tax will be deducted at 45%.

you are a:

  • company, or
  • public authority, or
  • local authority, or
  • Maori authority
that provides ACC home support services except where you operate as a labour hire business

 

tax won't be deducted before payment is made.

You will be responsible for paying any tax at the end of the year when you file your return.

  • you have a different organisational structure, eg you are a trust,
  • you don't operate as a labour hire business, and
  • you don't have a current certificate of exemption

You can choose the rate of tax you want deducted, provided it's not below 10% or use the standard rate for your activity shown on page 4 of the Tax rate notification for contractors (IR330C)

You'll need to complete a Tax rate notification for contractors (IR330C) or the ACC form How would you like us to pay for your care (ACC84) and send it to ACC before your first payment, otherwise tax will be deducted at 45%.

You can get an IR330C from "Forms and guides". The tax code you will use is "WT" as shown on the form.


 

 

Find out more

Find out what the tax obligations are for ACC clients and caregivers.