ACC levies #1 – Tips for the Self-Employed
What are ACC levies?
ACC levies help to fund injury claims and cover injuries that happen at work, at home or while doing everyday activities.
The levies are used to:
- pay for up to 80% of your earnings if there is an injury that ACC covers and you can’t work
- cover equipment, treatments, rehabilitation programmes needed to recover from the injury
- help prevent injuries so that there are fewer people who can’t work because of injuries
Who pays ACC levies?
Everyone who is self-employed, an employer or earns a salary, pays ACC levies. People who buy petrol and rego for their vehicle pay the levy, too.
How much are ACC levies?
It’s a very good question. There are various factors that affect how much you’ll pay. For self-employed people, it depends on your:
- income and expenses
- type of cover
- average hours of paid work per week
- other factors.
For example, there are industries that are considered higher risk. If you’re self-employed in horse racing activities or rugby playing, you’ll end up paying more in ACC levies than someone who is self-employed in legal or accounting services, even if you earned the same amount of money and worked full-time in self-employment.
Self-employed people from higher risk industries usually pay more in ACC levies
How to pay less in ACC levies?
If you were doing less than 30 hours of paid work per week on average, were self-employed in a less risky industry and had a lower business income after expenses, you’ll pay smaller ACC levies.
How will ACC know about me?
You should receive your ACC levy bill in July or August. ACC gets the information from IRD. For example, when you file your IR3 return, IRD passes some of the information to ACC so that they can calculate your ACC levies.
The information provided here is of a general nature. It is not intended to be a substitute for professional advice.