The ACC levy rate in 2026 is $1.56 per $100 of liable earnings for most earners, as set by the Accident Compensation Corporation (ACC) for the 2025–2026 levy year.
How is ACC calculated?
ACC calculates your compensation based on your earnings reported in your most recent Inland Revenue tax return.
Your declared income matters most if you're self-employed or a shareholder-employee. That’s when ACC figures out your weekly compensation—usually up to 80% of your pre-injury earnings. Employees typically get 80% of their average weekly earnings. And yes, these numbers get updated every year to keep up with inflation.
Do you have to pay ACC levies?
Yes, if you are an employee, employer, or self-employed, you must pay ACC levies.
These levies keep the ACC scheme running, providing injury cover for New Zealanders. How much you pay depends on your work status and industry risk level. Employers foot the Work Levy, while self-employed folks pay both a Work Levy and an Earners’ Levy. Check your annual invoice from ACC or Inland Revenue to confirm your exact amount.
What is ACC levy invoice?
An ACC levy invoice is a bill you receive after filing your tax return with Inland Revenue.
Inland Revenue shares your income details with ACC, which then sends you an invoice for your levies. Whether you're self-employed, a business owner, or an employer—this applies to you. The invoice breaks down your Work Levy, Earners’ Levy (if you have one), and any other levies tied to your situation.
Is ACC levy tax deductible?
Most ACC levies are tax deductible, except the earner premium for shareholders in a company.
If you're self-employed or run a business, you can claim your ACC levies as a deduction on your income tax return. Employers can also deduct the Work Levy they pay for their employees. Just keep those invoices handy—Inland Revenue might ask for them.
Who pays ACC levy?
All New Zealand workers pay ACC levies, including employees, employers, self-employed individuals, and contractors.
Employees see the Earners’ Levy taken right out of their wages. Employers pay a Work Levy based on their payroll. Self-employed people and contractors pay their levies directly to ACC. Even shareholders-employees might need to pay an Earners’ Levy, depending on their role.
What is ACC liable income?
ACC liable income is the portion of your earnings on which you must pay levies.
For employees, that’s usually your salary or wages. If you're self-employed, it’s your net profit after expenses. Shareholder-employees? Their liable income might include salary plus shareholder salary. ACC uses this figure to work out your levy amount each year.
Can I lose my job while on ACC?
No, you cannot lose your job solely because of an injury covered by ACC.
The Human Rights Act 1993 protects injured employees, requiring employers to make reasonable accommodations for your return to work. That said, if your injury leaves you permanently unable to do your job, your employer may need to let you go—after following the proper steps. Always talk to your employer and ACC about your options.
Can I work while on ACC?
Yes, you can work while on ACC if you’re able to perform alternative duties or reduced hours.
Your employer can pay you for the hours you work, and ACC tops up your earnings to 100% of your usual income. Say you usually earn $500 but work only half your hours—ACC may cover the missing 50%. Just make sure you check ACC’s and your employer’s policies first.
Does ACC cover depression?
ACC covers mental harm like depression and anxiety disorders only if they result from specific traumatic events, such as rape or sexual abuse.
Workplace stress or general life events? Not covered. To qualify, the mental harm must be diagnosed by a registered health professional and directly linked to a qualifying event. If you're unsure, see a doctor and contact ACC for guidance.
How do you pay ACC levy?
You can pay your ACC levy using credit card, internet banking, MyACC for Business, direct debit, or in person.
- Log in to MyACC for Business to pay online.
- Set up a direct debit payment plan if you prefer automatic payments.
- Pay via internet banking using the details on your invoice.
- Visit an ACC service center for in-person payment (if available).
- Note: ACC no longer accepts cheques as of 2024.
Just make sure your payment reaches them by the due date. Late payments can trigger interest or extra fees.
What is not covered by ACC?
ACC does not cover illness, sickness, contagious diseases, stress, or emotional issues unrelated to a qualifying accident.
The injury must come from an accident. So no coverage for the common cold, chronic illnesses like diabetes, or injuries from fighting. Mental health conditions only qualify if they stem from specific traumatic events. When in doubt, ask ACC directly.
How long does ACC cover last?
ACC covers injuries for up to 12 months after the date of the accident.
You’ve got 12 months to lodge your claim, though ACC might accept late claims with a good reason. Long-term conditions may get ongoing support, but standard weekly compensation usually ends after a year. Talk to ACC to map out your coverage timeline.
Do you pay GST on ACC levies?
No, you do not pay GST on ACC levies, as they are not subject to GST.
For employees, ACC levies are deducted through PAYE tax. If you're self-employed or a business owner, you pay your levies on top of income tax and GST. They’re a separate cost and don’t factor into your GST calculations.
Can you opt out of ACC?
No, ACC is compulsory, and no one can opt out to seek damages instead.
The Accident Compensation Act 2001 made ACC a no-fault scheme, so you can’t sue for personal injury damages. This applies to all New Zealand residents and workers. Visitors to New Zealand might have different coverage options, but locals don’t get a choice.
How does ACC abatement work?
ACC abatement reduces your weekly compensation by $1 for every $1 you earn above 80% of your pre-injury earnings.
Say you earned $1,000 a week before your injury. If you return to work earning $250, ACC tops it up to $800 (80% of your pre-injury pay). But if you earn $300, ACC drops your payment to $750. This keeps your income steady while you recover. Check with ACC for a personalized breakdown.
