This page explains how ACC CoverPlus Extra levies are calculated and what they cover.
How ACC CoverPlus Extra levies are calculated
Under ACC CoverPlus Extra, the agreed level of lost earnings cover is used to calculate both levies and entitlements (including lost earnings compensation).
Your client’s ACC CoverPlus Extra levies are calculated using the:
- agreed level of lost earnings cover
- liable earnings figure provided on the previous year’s IR3 tax return for the residual portion of the Work Account levy and Health and Safety in Employment (HSE) levy components only (see What is covered by various parts of your client’s levy)
- appropriate levy classification unit and Work levy rate for ACC CoverPlus Extra.
What is covered by the various parts of your client’s levy?
The following table shows what each levy covers and how it is calculated:
Levy name |
What the levy covers |
How it is calculated |
|---|---|---|
The current portion of the Work Account levy |
Covers medical, rehabilitation and lost earnings compensation costs for injuries that happen at work |
The classification unit rate x each $100 of liable earnings |
The residual portion of the Work Account levy |
Provides funds for the ongoing costs of work injuries that occurred before 1July1999 and non-work injuries to earners before 1 July1992. This levy is spread across all levy payers |
The residual portion of the levy rate levy rate x each $100 of liable earnings |
The current portion of the Earner’s Account levy |
Covers medical, rehabilitation and lost earnings compensation costs for any injury sustained outside work. This is paid by every employee and self-employed person in New Zealand |
The current portion of the levy rate x each $100 of liable earnings |
The residual portion of the Earners’ levy |
The continuing cost of non-work injuries to earners that happened between 1 July 1992 and 30 June 1999 |
The residual portion of the levy rate x each $100 of liable earnings |
Health and Safety in Employment levy |
ACC collects this levy on behalf of the Department of Labour. It is used to help fund Occupational Safety and Health |
5c x each $100 of liable earnings |
*Note:
The residual portion of the Work Account levy and HSE levies are based on a client’s actual earnings that they declare in their Inland Revenue tax return. This means your clients with ACC CoverPlus Extra will receive an additional invoice when they file their tax returns for these components only.
Last updated: 23 June 2010