What is the ACC Work levy and how is it different from the Earners' Levy?

As a New Zealand sole trader, you actually pay two types of ACC levies: **1. ACC Earners' Levy:** Paid by all earners (employed and self-employed). For 2024/25, the rate is 1.60% on liable earnings up to NZ$139,384. This is collected by IR as part of your provisional or end-of-year tax payment. **2. ACC Work Levy (formerly Working Cover):** This additional levy covers you for work-related injuries. As a self-employed person, you pay the Work levy based on your ANZSIC industry code. Rates vary significantly by industry — a desk-based consultant pays much less than a construction worker. You must register with ACC as a self-employed person to ensure you have the correct Work levy cover. ACC will invoice you directly for the Work levy, typically annually. **CoverPlus Extra (CPX):** As a self-employed person, you can opt for CoverPlus Extra — an optional product that allows you to set your own agreed compensation level in case of injury (rather than the default agreed upon by ACC). This can be important if ACC's standard calculation of your lost earnings would be lower than your actual income.

• Two ACC levies: Earners' Levy and Work Levy
• Earners' Levy: 1.60% collected by IR with income tax
• Work Levy: based on industry, invoiced directly by ACC
• Must register with ACC as self-employed
• CoverPlus Extra: optional product to set your own cover level