Recommendation with Minister

Should we increase the maximum and minimum earnings we levy?

We propose increasing the maximum and minimum amounts for levied liable earnings. Let us know what you think.

Our recommendations to the Minister

What we asked

We asked you about our proposal for the 2019 to 2021 levy period to increase the minimum and maximum liable earnings amounts for self-employed people and employers.

What you told us

  • More than half of submitters supported the proposal. Some of these submitters recommended removing the maximum income threshold, and others felt we should further increase the maximum earnings cover
  • Submitters opposed to the proposed increase were concerned about a potential increase to their levies. Many of these submitters felt they're already subject to significant taxation and/or ACC levies.

Our recommendation

The ACC Board recommends:

  • Increasing the minimum and maximum liable earnings on which self-employed people and employers pay levies as shown in the table below.

We acknowledge the feedback received for this proposal. Based on the balance of the support we received, we're recommending implementing the proposed increase to the minimum and maximum liable earnings.

However, we'll undertake further consideration of all the feedback and suggestions received over the next year and use it to inform our proposals in 2020.

  Current amount Recommended for 2019-2020 levy period Recommended for 2020-2021 levy period
Maximum for employees $126,286 $128,470 $130,911
Maximum for employers $126,286 $128,470 $130,911
Maximum for self-employed $124,053 $128,470 $130,911
Minimum for self-employed $32,760 $34,320 $34,320

We'll have a decision from the Government on our recommendations in December.

Our original proposal

We're looking at increasing the maximum amount of your income that you're charged levies on - your liable earnings.

This is to be in line with changes in the labour cost index. The minimum amount needs to increase to be in line with minimum wage changes.

 

More information

If you want more detail on this topic and the reason we proposed this, see our full consultation document.

ACC levy proposals for the 2019 to 2021 levy period
PDF 3.8 MB
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27 Sep 2018
Open for feedback

We were open for feedback from 27 September 2018 to 25 October 2018.

25 Oct 2018
Closed for feedback

We've reviewed your feedback. Thanks for telling us what you think!

Nov 2018
Recommendation with Minister

We've reviewed your feedback and based on what you've said we've made recommendations to the Minister. 

Dec 2018
Changes confirmed

Based on your feedback and agreement from the Minister, we've now confirmed our changes. Have a look at the topic to see what we've agreed.