Levy changes for businesses

All businesses and self-employed people in Aotearoa New Zealand pay a Work levy which goes into our Work Account. There will be a small increase every year over three years (on 1 April).

• When you notice levy rate changes will depend on whether you're an employer or self-employed. Employers get provisional invoices for the next following year, so they will see most changes sooner than self-employed people, who don’t receive provisional invoices.

If you’re engaged in sports as a business: 

• Your levy classification unit may change to better reflect the business activity your engaged in and the associated risk. You may see an increase or decrease to your levy depending on whether you or your employees participate (play) in the sport or not.  
• Additionally, the naming conventions of the classification units have been altered so it is likely that your classification unit will have a new title. 
• If you are an employer or a shareholder employer, you’ll first see a change in your classification unit in the provisional invoice you receive in 2025. For self-employed, you will see a change in your classification unit in the invoice you receive in 2026, unless you cease self-employment part way through the 2026 levy year (1 April 2025 to 31 March 2026). 
• Some of the classification unit changes can be found below. 

If you are a home improvement store that sells multiple retail and wholesale products: 

• You will be classified under a new classification unit called Home improvement goods trading – multiple product ranges.  

• This classification better reflects the business activity you're engaged in and risk associated with the activity.   

• If you are an employer or a shareholder employer, you’ll first see a change in your classification unit in the provisional invoice you receive in 2025. For self-employed, you will see a change in your classification unit in the invoice you receive in 2026, unless you cease self-employment part way through the 2026 levy year (1 April 2025 to 31 March 2026). 

If you currently qualify for the No Claims Discount programme, your claims history for work-related injuries determines whether you get a 10% discount, a 10% loading, or whether your Work levy stays the same.  No Claims Discount is ending as we’ve found it isn’t delivering improved health and safety outcomes as expected.

• The No Claims Discount adjustments will no longer apply for the 2027 levy year onwards. From this date your Work levy will be calculated using a rate determined by your business activity (Classification Unit) only.

• If you’re an employer or a shareholder employer, you’ll first see a change in your provisional invoice you receive in 2026. For self-employed, you will see a change in the invoice you receive in 2027, unless you cease self-employment part way through the 2026 levy year (1 April 2025 to 31 March 2026). 

If you are currently on a 3-month or 6-month instalment plan you do not pay any interest. From 1 April 2026, interest will apply to all instalment plans.  

Most customers pay levies in full. These changes aim to improve fairness to these levy payers and better encourage on-time, full payments. You will still have the option to pay via instalments. 

• The interest rate will be calculated using a formula based on the floating first mortgage new customer housing rate and a use of money adjustment. As a result, each instalment will include an interest component.   
• Information regarding how to opt-out of your roll over instalment plan will be provided closer to the time. 

From 1 April 2026, the penalty interest rate for late payments will be updated based on a similar formula, from the current set rate of 1%. 

All businesses in Aotearoa New Zealand pay a Work levy which goes into our Work Account.  There will be a small increase every year over three years (on 1 April). 

If you’re engaged in sports as a business: 

• Your levy classification unit may change to better reflect the business activity your engaged in and the associated risk. You may see an increase or decrease to your levy depending on whether you or your employees participate (play) in the sport or not.  
• Additionally, the naming conventions of the classification units have been altered so it is likely that your classification unit will have a new title. 
• If you are an employer or a shareholder employer, you’ll first see a change in your classification unit in the provisional invoice you receive in 2025. For self-employed, you will see a change in your classification unit in the invoice you receive in 2026, unless you cease self-employment part way through the 2026 levy year (1 April 2025 to 31 March 2026). 
• Some of the classification unit changes can be found below. 

If you are a home improvement store that sells multiple retail and wholesale products: 

• You will be classified under a new classification unit called Home improvement goods trading – multiple product ranges.  

• This classification better reflects the business activity you're engaged in and risk associated with the activity.   

• If you are an employer or a shareholder employer, you’ll first see a change in your classification unit in the provisional invoice you receive in 2025. For self-employed, you will see a change in your classification unit in the invoice you receive in 2026, unless you cease self-employment part way through the 2026 levy year (1 April 2025 to 31 March 2026). 

If you are currently on a 3-month or 6-month instalment plan you do not pay any interest. From 1 April 2026, interest will apply to all instalment plans.  

Most customers pay levies in full. These changes aim to improve fairness to these levy payers and better encourage on-time, full payments. You will still have the option to pay via instalments. 

• The interest rate will be calculated using a formula based on the floating first mortgage new customer housing rate and a use of money adjustment. As a result, each instalment will include an interest component.   
• Information regarding how to opt-out of your roll over instalment plan will be provided closer to the time. 

From 1 April 2026, the penalty interest rate for late payments will be updated based on a similar formula, from the current set rate of 1%. 

If you currently qualify for the Experience Rating programme, your Work levy can be adjusted from a discount of up to 50%, or a loading of up to 100%, based on your business’s claims history.  

• From 1 April 2025, the minimum cost threshold for claims to count towards your experience rated work levy will increase from $500 to $750. This change has been put in place to reflect increased medical and treatment costs. You will first see these cost changes in the provisional invoice you receive in 2025.
• Since the value of the loadings that we charge on Experience Rating is less than the amount of discounts, those outside the programme currently subsidise qualifying businesses. From 1 April 2026, businesses outside Experience Rating will no longer subsidise those in the programme. Instead, businesses in the Experience Rating programme will have an increase to their Work account levy rate, to ensure that Experience Rating is self-funding. You will first see these cost changes in the provisional invoice you receive in 2026. 

If you’re a business in ACC’s Accredited Employer’s Programme, cost changes will come into effect from 1 April 2025.  

• ACC regularly reviews the factors used to calculate the levy charged to accredited employers to ensure the levies charged consider changes in cost of treatment, the cost of running the ACC scheme and changes in injury frequency and severity.  

• Changes for accredited employers include update to the product discounts, admin fee, bulk-funded costs fee, and stop-loss and high-cost claim fees.  

• You will first see these cost changes in the provisional invoice you receive in 2025. 

The ACC Fleet Saver programme offers levy reductions to eligible businesses in the transport sector that operate heavy goods vehicles. The programme will close to new members and renewals on 30 June 2025. The programme will fully close on 30 June 2029 as it hasn’t lowered the risk of injury in the transport industry as anticipated.  

Fleet Saver businesses have two options: 

1. Let your membership lapse. Your levy discounts will stop after your membership lapses.
2. Extend your membership by reapplying on or before 30 June 2025. Your membership will be extended for four years starting from the date on which you are notified of the success of the application or until 30 June 2029, whichever comes first. Late applications will not be considered. You can apply for a reassessment only if six months have passed after you were told the result of your last audit. 

If you have any questions about the Fleet Saver changes, contact us:

Email fleetsaver@acc.co.nz