YOUR MIDWIFERY BUSINESS
navigating ACC for self-employed midwives MICHAEL STIRLING FINANCE MANAGER, MMPO
WHO IS ACC? The Accident Compensation Corporation (ACC) is a Crown entity, originally established in 1974, which brought together various compensation schemes and related work-safe laws. Its principal governing Act is the Accident Compensation Act 2001 and the organisation is governed by a board, answerable to the Minister for ACC. WHO IS COVERED BY ACC? ACC provides compulsory insurance cover for personal injury for everyone in New Zealand, whether a citizen, resident, or visitor. This means if you are injured by an accident in New Zealand, ACC may pay compensation, as well as some of your medical and rehabilitation costs. WHAT STANDARD LEVEL OF COVER DOES ACC PROVIDE? ACC provides 24/7, no-fault personal injury cover for everyone in New Zealand, including a range of cover for motor vehicle, non-work, and workplace injuries. ACC only covers injuries; however, your injury must be the direct result of an accident, and not the result of any pre-existing medical conditions. ACC does not cover illness, conditions from ageing, or emotional issues. If you want specific cover for these particular cases, you will need to consider separate income protection cover, which an insurance broker will be able to advise about. ACC may also assist with full or partial funding towards medical, health and other ongoing rehabilitation and treatment costs resulting from the injury, provided your claim has been accepted. HOW ARE ACC LEVIES CALCULATED FOR THE SELF-EMPLOYED? ACC uses Business Industry Classification Codes (BIC), assigned to your business
14 | AOTEAROA NEW ZEALAND MIDWIFE
by way of a Classification Unit (CU). CUs group businesses together with similar levels of risk, in order to determine the levy rate to be paid, ensuring the costs of injuries are shared equitably across industries. ACC assigns the levy rates to CUs based on historical data from past claims. In general, the higher the occupational risk (based on past claims received), the higher the future levies will be when compared to lower-risk, profiled occupations. Annually, when you file your personal Income Tax Return (IR3) with Inland Revenue, your taxable income details are automatically shared with ACC and the basis for your levy calculation is determined by the business structure you operate under. HOW MUCH WILL MY ACC LEVY BE FOR THE YEAR ENDED 31 MAR 2022? Based on the BIC Code of Q853955 and CU Code of 86132 ‘Midwifery Service’, the current prescribed rate set by ACC is $1.78 plus GST per $100 of net profit. Use the range table below in order to determine the approximate ACC levy payable next year
(GST exclusive), based on your annual net earnings derived from performing midwifery services (see below). HOW DOES THE ACTUAL CLAIMS PROCESS WORK IN PRACTICE? If you need ACC cover for an injury, as soon as practically possible, visit your trusted health provider: be it your doctor, physiotherapist, Medical Centre, or local Emergency Department. A claim will be lodged by your health professional with ACC on your behalf, and if appropriate, a medical certificate issued, noting the period you are unable to work for. ACC will then consider the claim and confirm in writing whether you are eligible or not. If you are covered, ACC will request proof of earnings by way of previous years’ income tax returns and financial statements, and possibly net income details for the current financial year to date as well. If your claim is considered ‘standard’, ACC allow up to 21 days for processing.
APPROXIMATE ACC LEVY PAYABLE FOR YEAR ENDING 31 MARCH 2022 $2,330
2,500 $2,136 2,000
$1,780 $1,424
1,500 $1,068 1,000 $712 500
0 40,000
60,000
80,000
100,000
120,000
130,911 (maximum)
