Home improvement stores classification units

The Minister for ACC is proposing, from 1 April 2025, to move home improvement stores to a single classification.  

ACC currently classifies home improvement stores — often large-format hardware stores — under different classification units, depending on their business activity. Considerations include:  

• the types of products they sell 
• whether they sell to the public or businesses — retail or wholesale. 

Unless a store is eligible for more than one classification unit, ACC applies the highest risk-rated wholesale or retail classification unit to the payroll. That’s even if the specific business activity is only a small part of their business. 

Customers have said the current state is unfair and complex. Similar businesses with similar risks are being levied at different rates.  

Proposed approach  

The Minister for ACC agrees that we need to remove unnecessary complexity in the classification system and improve fairness for our customers.   

The Minister proposes classifying home improvement stores that sell multiple retail and wholesale products under a new classification unit: CU 52329 Home improvement goods trading – multiple product ranges.   

A new Levy Risk Group (LRG 430 Home improvement goods trading) would be created specifically for this classification unit, meaning that the levy rate would reflect that these stores have a different risk profile from stores that operate as a single category, or are solely retail or wholesale. 

Impacts of the proposed change 

The introduction of a single classification unit will roughly halve levies for some stores and raise them about 20% for others. 

The table below outlines how the change would impact stores and their 2025/26 levy. 

CU table - proposed new CU structure, with proposed rates (PDF 799 KB)