Recommendation with Minister

How should we classify businesses who retail online-only?

Currently, online-only retail businesses are classified under the same classification unit (CU), irrespective of the types of products they sell. Is this fair?

This proposal is now closed. Thanks for your feedback. We’ll have a decision from the Government in December.

If you’re self-employed or employ staff, you pay the Work levy. This levy pays for injuries and accidents that happen at work or are work-related. 

We charge the Work levy at different rates depending on the industry you’re in. 

Industries are grouped together into levy risk groups first, eg building completion services, and classification units second, eg painting and decorating services.

Online-only retail businesses all have the same CU

Currently, we classify businesses who sell their goods online only under ‘CU 52595 Non-store retailing’, irrespective of the types of products they sell.

For example, an online business selling books is classified the same as a business selling furniture. They’re also grouped with other direct sellers, such as those selling through a market stall.

In comparison, brick-and-mortar or store-based businesses are classified differently and pay different levies, based on the products they sell.

For example, a book retailer is classified differently to a furniture retailer.

We need to regularly review our CU groups to make sure:

  • the right businesses are classified together
  • it accurately reflects the:
    • work they do 
    • risk of injury their employees are exposed to.

More information

If you want more detail on this topic and the thinking behind what is being proposed, see the full consultation document.

The Minister for ACC consultation proposals for the 2019 to 2021 levy period
PDF 1.8 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

The Ministry for Business, Innovation and Employment (MBIE) has reviewed your feedback. Thanks for telling us what you think!

Nov 2018
Recommendation with Minister

The Ministry for Business, Innovation and Employment (MBIE) has reviewed your feedback and based on what you've said they have made recommendations to the Minister.

Dec 2018
Changes confirmed

Based on your feedback and agreement from the Minister, the changes have now been confirmed. Have a look at the topic to see what has been agreed.