ACC Levies: Who Qualifies and What You Get
Understand how ACC levies work for earners in New Zealand and how your income affects your coverage.
ACC levies are mandatory contributions that provide injury cover for people working in New Zealand. This system ensures that those who earn an income have access to support following an accident.
Who it's for
This scheme is not optional for those working in the country; it applies to all earners in New Zealand. Whether you are an employee or someone working for yourself, you fall under this system to ensure widespread coverage for the workforce.
What you get
The primary benefit of paying these levies is comprehensive injury cover. This coverage is designed to provide support regardless of fault, meaning you are covered even if an accident was not caused by someone else's negligence. This provides a safety net for people to recover from injuries sustained while working or earning.
What it costs you
The cost is calculated as an annual levy. The amount you are required to pay is not a fixed flat rate; instead, it is determined by two main factors: your total earnings and your specific business risk code. Your risk code is based on the nature of your work and how likely that work is to result in an injury.
The catch to know
The most important thing for self-employed individuals to remember is the requirement for accurate reporting. You must declare your income accurately to the relevant authorities. If your declared earnings are lower than what you actually earned, you risk under-paying your levies, which can lead to issues with your standing or unexpected costs later.
How to apply
- Calculate your total earnings for the relevant period.
- Confirm the business risk code that applies to your specific type of work.
- Report your income and details to ensure your levies are calculated correctly.
- Visit the official portal for more details: https://www.acc.co.nz