What businesses need to know about levy changes

ACC invoices are coming – what businesses need to know about levy changes

With ACC employer invoicing coming up, businesses need to be aware of changes to how ACC levies are now calculated, following recommendations from the 2024 levy consultation and agreement by Government. This means levy invoices may look different this year.

These changes are designed to make levies fairer and easier for businesses to understand. The impact will vary depending on each business and how its levy is paid.

Interest now applies to all new plans

All instalment plans now use the same annual interest rate, making it easier for businesses to compare other finance options. The current annualised instalment interest rate is 8.31% and is reviewed each April.

The interest charged depends on the length of the instalment plan: a three-month plan has a rate of 1.04%, a six-month plan is 2.08%, and a 10-month plan is 3.46%.
The rate stays the same for the full length of the plan. Longer plans mean more interest overall, because payments are spread over a longer period.

Businesses can use the ACC levy estimator to see what payments could look like and choose what works best for their needs.

Businesses in Experience Rating will pay an additional programme rate

The Experience Rating programme will now be self-funded, so businesses outside the programme will no longer subsidise it.

Businesses in the programme will pay an additional Experience Rating Programme rate, currently 7.2%, on top of their Work Account levy. This will appear as a single Work Levy (ER) rate on your 2027 provisional invoice and is separate from your Experience Rating loading or discount.

To reflect rising costs in New Zealand, the minimum medical and treatment cost threshold in the Experience Rating programme will be increased from $500 to $750.

No Claims Discount is ending

For businesses in the No Claims Discount programme, work-related claims history determined whether they received a discount or paid a loading on their work levy.

Data shows the programme has not improved health and safety outcomes as it’s funded by businesses outside it, so the No Claims Discount is ending.

More information about the levy changes and how they may affect businesses is available on the ACC website.

Businesses should check their details now

Now is a good time for businesses to check their details are accurate, so invoices are correct the first time. Before invoices arrive, businesses should take a few minutes to review their ACC account details.

ACC uses account details, along with final payroll and earnings information from Inland Revenue, to calculate levies and send invoices — so it is important business information is up to date.

Businesses should let ACC know if anything has changed, including:

• contact details or address
• business type or the services provided
• whether the business has stopped trading
• any changes to payroll or number of employees.

Businesses can check their details by logging in or registering with MyACC for Business.