Asked about New Zealand ACC levies for self-employed individuals.
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Earner levy rate (all earners including self-employed)
$1.67 per $100 (1.67%)Accident Compensation Act 2001 (AC Act), Schedule 1
Maximum liable earnings (2025/26)
$142,283 (approximate)Accident Compensation Act 2001 (AC Act), Schedule 1
Working Safer levy rate (self-employed)
~$0.08 per $100Accident Compensation Act 2001 (AC Act)
ACC levy tax year (2025)
1 April 2025 – 31 March 2026Accident Compensation Act 2001 (AC Act)
Work levy rate -- CU 72100 Computer consultancy
~$0.08 per $100Accident Compensation Act 2001 (AC Act), Schedule 1
Work levy rate -- CU 69200 Accounting services
~$0.08 per $100Accident Compensation Act 2001 (AC Act), Schedule 1
Work levy rate -- CU 62000 Software development
~$0.09 per $100Accident Compensation Act 2001 (AC Act), Schedule 1
Work levy rate -- CU 52100 General retail
~$0.47 per $100Accident Compensation Act 2001 (AC Act), Schedule 1
Work levy rate -- CU 41100 Building construction
~$2.68 per $100Accident Compensation Act 2001 (AC Act), Schedule 1
Work levy rate -- CU 01600 Dairy farming
~$2.41 per $100Accident Compensation Act 2001 (AC Act), Schedule 1
Work levy rate -- CU 11200 Forestry
~$8.30 per $100Accident Compensation Act 2001 (AC Act), Schedule 1
Earner levy formula
Liable earnings × $1.67 / $100Accident Compensation Act 2001 (AC Act), Schedule 1
Work levy formula
Liable earnings × work levy rate for CU / $100Accident Compensation Act 2001 (AC Act), Schedule 1
Working Safer levy formula
Liable earnings × $0.08 / $100Accident Compensation Act 2001 (AC Act), Schedule 1
Total ACC levy formula
Earner levy + work levy + Working Safer levyAccident Compensation Act 2001 (AC Act), Schedule 1
Earnings cap for levy calculation
Cap earnings at $142,283 (maximum liable earnings)Accident Compensation Act 2001 (AC Act), Schedule 1
CoverPlus (Default) compensation basis
80% of liable earnings (based on prior year IR3)Accident Compensation Act 2001 (AC Act)
GST on ACC levies
ACC levies are GST-exclusive; GST is added for GST-registered persons; GST component is claimable as input taxGoods and Services Tax Act 1985
ACC levies (earner levy and work levy) deductibility
Both earner levy and work levy are deductible business expenses against business incomeIncome Tax Act 2007
ACC invoice timing after IR3 filing
ACC sends invoice after IR3 is filed (typically September–November)Accident Compensation Act 2001 (AC Act)
ACC invoice payment due date
As stated on ACC invoice (typically 30 days from issue)Accident Compensation Act 2001 (AC Act)
ACC levy payment instalment options
Single payment, or instalments (2, 4, or monthly by arrangement)Accident Compensation Act 2001 (AC Act)
Late payment penalty on ACC levies
Penalties and interest apply on late paymentAccident Compensation Act 2001 (AC Act)
CU primary activity threshold for CU assignment (multiple activities)
>50% of time or income determines primary CUAccident Compensation Act 2001 (AC Act)
Earner levy applicability for self-employed also in PAYE employment
Earner levy applies on total earnings from both sources combined, up to maximum liable earnings ($142,283); work levy applies only to self-employment incomeAccident Compensation Act 2001 (AC Act), Schedule 1
Quick reference fields
| Field | Value |
|---|---|
| Country | New Zealand |
| Jurisdiction Code | NZ |
| Primary Legislation | Accident Compensation Act 2001 (AC Act) |
| Supporting Legislation | Injury Prevention, Rehabilitation, and Compensation Act 2001 |
| Authority | Accident Compensation Corporation (ACC) |
| Filing Portal | myACC for Business (myacc.acc.co.nz) |
| Tax Year | 2025 (1 April 2025 -- 31 March 2026) |
| Currency | NZD only |
| Maximum Liable Earnings | $142,283 (approximate -- verify with ACC) |
| Contributor | Open Accountants Community |
| Validated By | Pending -- requires sign-off by NZ chartered accountant |
| Validation Date | Pending |
| Skill Version | 2.0 |
| Confidence Coverage | Tier 1: earner levy rate, work levy computation, maximum liable earnings. Tier 2: CU selection, CoverPlus Extra, experience rating. Tier 3: claims management, dispute resolution, complex multi-business structures. |
Read this whole section before computing anything.
ACC levy components (2025/26)
| Levy | Who Pays | Rate |
|---|---|---|
| Earner levy | All earners (including self-employed) | $1.67 per $100 (1.67%) |
| Work levy | Self-employed only | Varies by classification unit (CU) |
| Working Safer levy | Self-employed | ~$0.08 per $100 |
Illustrative work levy rates by CU (2025/26)
| CU Code | Industry | Work Levy (per $100) |
|---|---|---|
| 72100 | Computer consultancy | ~$0.08 |
| 69200 | Accounting services | ~$0.08 |
| 62000 | Software development | ~$0.09 |
| 52100 | General retail | ~$0.47 |
| 41100 | Building construction | ~$2.68 |
| 01600 | Dairy farming | ~$2.41 |
| 11200 | Forestry | ~$8.30 |
These rates are illustrative. Actual rates must be verified at acc.co.nz or on the client's ACC invoice.
CoverPlus vs CoverPlus Extra
| Feature | CoverPlus (Default) | CoverPlus Extra |
|---|---|---|
| Compensation basis | 80% of liable earnings (prior year IR3) | Agreed level chosen by client |
| Levy basis | Actual earnings | Chosen cover amount |
| Adjustment | Adjusted when IR3 filed | Fixed at agreed level |
Conservative defaults
| Ambiguity | Default |
|---|---|
| Unknown CU code | Flag for reviewer -- CU determines work levy rate |
| Unknown CoverPlus option | CoverPlus (default) |
| Unknown GST status | GST-registered (levies are GST-exclusive, GST added) |
| Unknown liable earnings | Use most recent IR3 figure |
This is the deterministic pre-classifier for bank statement entries related to ACC. Match by case-insensitive substring.
ACC levy payments patterns
| Pattern | Treatment | Notes |
|---|---|---|
| ACC, ACCIDENT COMPENSATION | ACC LEVY PAYMENT | Annual or instalment levy payment |
| ACC LEVY, ACC INVOICE | ACC LEVY PAYMENT | Same |
| ACC COVERPLUS, COVERPLUS EXTRA | ACC LEVY PAYMENT | CoverPlus or CoverPlus Extra invoice payment |
ACC provisional invoicing patterns
| Pattern | Treatment | Notes |
|---|---|---|
| ACC PROVISIONAL, ACC ESTIMATE | PROVISIONAL LEVY | Based on most recent known earnings; adjusted once IR3 processed |
| ACC ADJUSTMENT, ACC REFUND | LEVY ADJUSTMENT | Difference between provisional and actual; may be refund or additional charge |
GST treatment pattern
| Pattern | Treatment | Notes |
|---|---|---|
| ACC + GST component visible | GST INPUT CLAIM | ACC levies are GST-exclusive; GST added for registered persons; GST component claimable |
IRD payment patterns
| Pattern | Treatment | Notes |
|---|---|---|
| IRD, INLAND REVENUE NZ | TAX PAYMENT | IR3 filing triggers ACC levy calculation |
| IR3 FILED | ACC TRIGGER | Once IR3 processed, ACC issues or adjusts invoice |
Levy computation steps (AC Act 2001, Schedule 1)
| Step | Action |
|---|---|
| 4.1 | Determine liable earnings = net self-employment income from IR3 |
| 4.2 | Cap earnings at maximum liable earnings ($142,283) if applicable |
| 4.3 | Earner levy = liable earnings x $1.67 / $100 |
| 4.4 | Work levy = liable earnings x work levy rate for CU / $100 |
| 4.5 | Working Safer levy = liable earnings x $0.08 / $100 |
| 4.6 | Total ACC levy = earner levy + work levy + Working Safer levy |
| 4.7 | GST: levies are GST-exclusive; GST added if GST-registered |
Invoicing details
| Detail | Value |
|---|---|
| Invoice timing | ACC sends invoice after IR3 is filed (typically September-November) |
| Payment options | Single payment, or instalments (2, 4, or monthly by arrangement) |
| Due date | As stated on ACC invoice (typically 30 days from issue) |
| Late payment | Penalties and interest apply |
Situation: Client runs a software consultancy (CU 72100) and a construction side business (CU 41100). Resolution: ACC assigns the CU based on the primary activity (>50% of time or income). If roughly equal, ACC may split or assign higher-risk CU. Flag for reviewer.
Situation: Client started freelancing in March 2025. No prior-year IR3. Resolution: ACC will estimate levies or use the minimum. Once first IR3 is filed, levies are recalculated and adjusted.
Situation: Client has PAYE employment and a freelance side business. Resolution: Earner levy on total earnings (both sources combined, up to maximum). Work levy applies only to self-employment income. PAYE employer covers work levy for employment income.
Situation: Consultant earns $200,000 net self-employment income. Resolution: Levies calculated on $142,283 (maximum), not $200,000. Weekly compensation if injured is also capped.
Situation: Client classified as "building construction" but primarily does office-based project management. Resolution: Client can apply to ACC for CU reclassification. CU determines work levy rate and can significantly affect costs. Flag for reviewer.
Situation: GST-registered sole trader receives ACC invoice. Resolution: ACC levies are GST-exclusive. ACC adds GST to the invoice. GST component is claimable as input tax.
When a Tier 2 situation is identified:
REVIEWER FLAG
Tier: T2
Client: [name]
Situation: [description]
Issue: [what is ambiguous]
Options: [possible treatments]
Recommended: [most likely correct treatment and why]
Action Required: Qualified NZ chartered accountant must confirm before advising client.
When a Tier 3 situation is identified:
ESCALATION REQUIRED
Tier: T3
Client: [name]
Situation: [description]
Issue: [outside skill scope]
Action Required: Do not advise. Refer to qualified NZ chartered accountant. Document gap.
Input: CU 72100, liable earnings $120,000, work levy rate $0.08/100. Expected output: Earner levy: $2,004.00. Work levy: $96.00. Working Safer: $96.00. Total: ~$2,196.00 (excl. GST).
Input: CU 69200, liable earnings $200,000, maximum $142,283. Expected output: Capped at $142,283. Earner levy: $2,376.13. Work levy: $113.83. Working Safer: $113.83. Total: ~$2,603.79 (excl. GST).
Input: CU 41100, liable earnings $80,000, work levy rate $2.68/100. Expected output: Earner levy: $1,336.00. Work levy: $2,144.00. Working Safer: $64.00. Total: ~$3,544.00 (excl. GST).
Input: CU 72100, liable earnings $25,000. Expected output: Earner levy: $417.50. Work levy: $20.00. Working Safer: $20.00. Total: ~$457.50 (excl. GST).
This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a New Zealand Chartered Accountant or equivalent licensed practitioner) before filing or acting upon.
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Other New Zealand computations in the OpenAccountants Tax Library.
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