Changes confirmed by Government
Cabinet has announced what the 2019-21 levy rates will be. After reviewing your feedback and our recommendations they have agreed with our recommendation to increase the minimum and maximum liable earnings on which self-employed people and employers pay levies.
The table below in our recommendations shows this increase. This will come into effect on 1 April 2019.
|Levy year||Minimum self-employed liable earnings||Maximum self-employed liable earnings||Maximum employee liable earnings|
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.
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|
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.
If you want more detail on this topic and the reason we proposed this, see our full consultation document.