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If you’re self-employed, you won’t be receiving an invoice this year

Mēnā he kaimahi ā-kiri koe, kāore koe e whiwhi nama i a mātou i tēnei tau
11 September 2019
2 minute read

Based on your feedback, we’re making changes to how we levy self-employed people. If you’re self-employed you won’t receive a 2019/20 invoice in 2019.

Based on feedback from you, we’re changing how we invoice levies for self-employed people. And this year, if you’re self-employed, you'll receive your next invoice in 2020, following your tax return.

We’ll use your income from your tax return for the 2019/20 financial year to calculate your levy. This means we’ll base your levy on your actual earnings, instead of your forecasted earnings.

of submitters told us the new system would be fairer than the current approach.

What you told us

During the 2018 Levy Consultation, the Minister for ACC requested feedback on a proposal to levy self-employed people based on their actual earnings for the year.

Overwhelmingly, submitters told us this system is fairer than the current approach, given their earnings often fluctuate year-to-year.

People sought greater flexibility with our approach to those who are self-employed. Before, we would calculate the Earners’ Levy and Work Account Levy for self-employed people based on the income they earned the year prior.

Additionally, submitters noted that a pre-payment option was less desirable. This is due to fluctuating incomes often making it difficult to predict payments or pay in advance.

It just makes sense to charge based on current earnings. Significant disadvantage can occur if income drops and the levy is based historically.

Further information

Remember, you would have paid your levy for the 2018/19 tax year in advance, so you’re already covered for this year.

This change only affects self-employed people who are on CoverPlus cover. Those on CoverPlus Extra will still receive an invoice in advance.

Types of cover for self-employed

If you've received an invoice this year, or you have more questions, you can find out more about these levy changes on our business updates.

Changes to self-employed levies

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