ACC FACTS Accident Compensation Corporation

There are 3 types of ACC Levies:

- Earner’s Levy (covers accidents outside the workplace)

- Work Levy (covers accidents inside the workplace)

- Working Safer Levy (collected on behalf of the Ministry of Business Innovation and Employment to support the activities of WorkSafe New Zealand).

Using The Correct ACC Code

Using the correct ACC code is important in determining the ACC Levy that will be charged. For example, if the duties of the shareholder/employee include less than 5% farming activities and 95% plus of administration activities, then the administration code can be used, which has a much lower ACC rate.

Maximum Earning Level

The Maximum Earning Level liable for ACC has lifted to $139,384 for the 2023/2024 year.

Full Or Part-Time

If you work less than 30 hours per week over all sources of income (PAYE, self-employed, partnership, and shareholder employee), then your Levy is based on your actual income. The minimum ACC cover of $43,349 therefore, does not apply, if your earnings are less than this figure and you nominate the part-time ACC code. This means for self-employed/partnership income, you can significantly lower your ACC premiums by choosing a Part-Time ACC code if you work less than 30 hours per week.

CoverPlus Extra (CPX)

CPX is a more flexible alternative to the normal compulsory ACC cover, which enables you to negotiate an agreed level of cover with ACC. This is an opportunity to reconsider your ACC options, which may enable you to achieve some of the following:

- Reduce unnecessary ACC cover with consequent savings in ACC Levies.

- Raise the level of ACC cover where taxable earnings are at an artificially low level.

- Fix a level of ACC cover without having to establish loss of earnings from your farm.

- Provide ACC cover in the first year of a new business.

- Return to work on reduced hours but still able to receive ACC payments.

We can help arrange ACC CoverPlus Extra and discuss with you the best arrangement for your circumstances.

CPX & Private Insurance

Another alternative to consider where a shareholder salary is being paid, is to apply for ACC CoverPlus Extra at a prescribed level, or alternatively for the minimum ACC CoverPlus Extra of $34,679 or $667 gross per week) for the 2023/2024 year, and then arrange for a top up from private insurance cover (designed specifically for farmers), which may be able to cover both accident and sickness work-related compensation.