What is the ACC Earners' Levy and how much do sole traders pay?

The ACC Earners' Levy funds New Zealand's Accident Compensation Corporation (ACC) scheme, which provides no-fault cover for accidental injuries for all New Zealanders. For the 2024/25 tax year, the ACC Earners' Levy rate is NZ$1.60 per NZ$100 of liable earnings (1.60%). The maximum liable earnings are NZ$139,384, meaning the maximum levy you can pay is approximately NZ$2,230. As a sole trader, you pay both the ACC Earners' Levy (as an earner) and may also have to pay the ACC Work levy (as a self-employed person). The Work levy amount depends on your industry classification code (ANZSIC code). Importantly, ACC levy payments are NOT a deductible business expense — they are a personal levy, similar to income tax.

• Rate: NZ$1.60 per NZ$100 (1.60%) for 2024/25
• Maximum liable earnings: NZ$139,384
• Maximum levy: approximately NZ$2,230
• NOT a deductible business expense
• Sole traders pay both Earners' and Work levies