The first levy reduction of 2015/16 takes effect on 1 April, the start of the new financial year. From then, the average work levy paid by employers and those who are self-employed falls from 95c to 90c on every liable $100 earned. This is an average decrease of 5%.
Three months later, the ACC Motor Vehicle levy will also fall. At present, vehicle owners pay an average of $331 a year through licensing fees and petrol levies to cover the cost of injuries on roads involving motor vehicles. From 1 July the average levy will fall to $195. This includes an average decrease of 41% on the ACC levy which you pay through your licensing fee (your vehicle registration) and 3c a litre off your petrol levy.
You’ll receive your 2015/16 ACC invoice in the post after you file your earnings for the year with Inland Revenue.
What you need to do:
- Update your calculations and make sure you’re putting the right amount of money aside. Find out more about the new rates on ACC’s website.
- Check your budget. You may pay less for ACC levies, but you may need to pay your staff more when minimum wage rates rise on 1 April.
- Review how you pay levies to stay compliant – and avoid penalties. See the tax and levies section of our Compliance Matters tool.
For more information, call ACC’s Business Helpline on 0800 222 776 or email This email address is being protected from spambots. You need JavaScript enabled to view it.
For tips on how to further reduce your levies, see Workplace Safety Discounts on the ACC website.
(Source Business.govt.nz)
