ACC Levy Season: What You Need to Know

If you're a small business owner in New Zealand, you're likely to receive at least one ACC invoice each year- often around April. But not all ACC invoices are the same.

Understanding what you're being charged for (and whether it's the right fit for your business) can save you stress - and money.

💡How ACC levies work

ACC levies are compulsory for most people in business. If you’re self-employed, your levy is based on your net profit. If you have employees, it’s calculated on their gross wages. These levies help cover the cost of injury support - for both you and your team.

Once your income tax return is filed, Inland Revenue passes your income details to ACC, who then issue an invoice based on your earnings and business type. It’s worth checking the classification code they’ve assigned to your business, as higher-risk industries pay higher rates. You can now view and pay your levy invoices online using your ACC number.

Keep in mind that ACC usually invoices for both the past year and an estimate for the current year - so it can feel like you’re being charged for two years at once. If needed, you can arrange monthly payments, but interest may apply. Most ACC levies are tax deductible, except for the earners’ levy portion paid by shareholder-employees.

To estimate your costs, try the ACC levy calculator.

🧾 The Three Main Types of ACC Invoices

1. CoverPlus Extra Invoice (CPX)

This is an optional ACC product—great for self-employed people and shareholders that take drawings who want certainty.

You agree in advance on your level of cover, which means:

• You know exactly how much you’ll get if you need to claim

• You can control the levies you pay. It’s a smart option if you take drawings, not PAYE wages, have made a loss or if your income varies year to year.

  
  

2. Shareholder-Employee Invoice

If you’re a working shareholder and you declare a shareholder salary on your income tax return you will receive an invoice based on the salary you have declared.

Your business can claim some of this invoice as a tax deduction however the Earner Levy (which is usually the biggest part is not claimable). You will personally be covered under standard ACC Work and Earners’ cover.

3. Employer Invoice

If your business has employees including you if you pay yourself a PAYE wage or salary, you’ll receive an ACC Employer invoice.

This includes:

• Work levy (based on your staff’s industry risk classification)

• Earners’ levy (to cover non-work injuries)It’s based on total gross PAYE wages and is due annually, often issued within a couple of months of your final PAYE return for the financial year

✅ Why Consider CoverPlus Extra?

For sole traders or owners taking drawings, CPX can be a game-changer:

• Your levy is based on the agreed amount, not last year’s taxable income

• You don’t need to prove income at claim time—easing stress when you're injured and can’t work

• If you have come out of paid employment into business and have lower earnings or losses you can get cover for a higher amount

• You can choose a lower levy if you're only partly reliant on self-employed income

It’s particularly useful if your income fluctuates or if you’d be hit hard by waiting for IRD to assess income post-accident.

If you take drawings or have fluctuating income, CoverPlus Extra gives you certainty and control over your ACC cover.

What is CoverPlus Extra?

CoverPlus Extra (CPX) is a tailored ACC option designed for self-employed people who want more certainty and flexibility when it comes to their injury cover. Unlike the standard CoverPlus plan, which bases your compensation on your most recent earnings, CPX allows you to agree in advance on how much you’ll be covered for if you're injured and unable to work.

Who is it for?

This is especially helpful if you take drawings instead of a PAYE wage, or if your income tends to fluctuate from year to year. With CPX, you won’t need to prove your income at claim time, which can save time and reduce stress when you’re already dealing with an injury.

What are the benefits?

It also allows you to reduce or increase your cover amount depending on your situation—so if you have other sources of income, or you're winding down part of your business, you can choose a lower level of cover and pay a smaller levy. I you have other forms of insurance to cover lost income you might not need a high level of ACC cover.

How do you get it?

Applying for CoverPlus Extra is optional and must be done directly with ACC—it's not automatic. If you want to move to CPX, it’s best to do so before your standard invoice is issued, so your levies reflect the agreed cover straight away. If you’re unsure whether it’s the right fit for you, we can help review your setup and guide you through the process.

Need help with your ACC cover?

Not sure which ACC cover applies to you or whether CoverPlus Extra is the right fit? We can help you make sense of your invoices and ensure you’re only paying for what you actually need.

Get in touch if you’d like us to review your ACC setup or talk through your options.

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