Accident Compensation (Earners’ Levy) Regulations 2025
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2025/18
Accident Compensation (Earners’ Levy) Regulations 2025
Cindy Kiro, Governor-General
Order in Council
At Wellington this 24th day of February 2025
Present:
Her Excellency the Governor-General in Council
These regulations are made under section 329 of the Accident Compensation Act 2001—
(a)
on the advice and with the consent of the Executive Council; and
(b)
on the recommendation of the Minister for ACC made—
(i)
having regard to the principles of financial responsibility specified in section 166A of that Act; and
(ii)
after complying with the consultation requirement specified in section 330 of that Act; and
(iii)
after receiving and considering a recommendation from the Accident Compensation Corporation made in accordance with section 331 of that Act.
Contents
Regulations
1 Title
These regulations are the Accident Compensation (Earners’ Levy) Regulations 2025.
2 Commencement
These regulations come into force on 1 April 2025.
3 Interpretation
In these regulations, unless the context otherwise requires,—
Act means the Accident Compensation Act 2001
earners’ levy means the levy payable to fund the Earners’ Account under section 219(1) of the Act.
4 Earners’ levy
(1)
The amount of earners’ levy payable for the 2025/26 tax year is,—
(a)
for all earners, except those described in paragraphs (b) and (c), $1.45 per $100 of earnings (which means, for self-employed persons, earnings derived or treated as being derived, and for other earners, earnings paid or treated as paid) in that tax year:
(b)
for self-employed persons to whom regulation 6 applies (but regulation 7 does not apply), the amount calculated in accordance with regulation 6(2):
(c)
for self-employed persons to whom regulation 7 applies, the amount calculated in accordance with regulation 7(2).
(2)
The amount of earners’ levy payable for the 2026/27 tax year is,—
(a)
for all earners, except those described in paragraphs (b) and (c), $1.52 per $100 of earnings (which means, for self-employed persons, earnings derived or treated as being derived, and for other earners, earnings paid or treated as paid) in that tax year:
(b)
for self-employed persons to whom regulation 6 applies (but regulation 7 does not apply), the amount calculated in accordance with regulation 6(4):
(c)
for self-employed persons to whom regulation 7 applies, the amount calculated in accordance with regulation 7(4).
(3)
The amount of earners’ levy payable for the 2027/28 tax year, and any later tax year, is,—
(a)
for all earners, except those described in paragraphs (b) and (c), $1.59 per $100 of earnings (which means, for self-employed persons, earnings derived or treated as being derived, and for other earners, earnings paid or treated as paid) in the tax year:
(b)
for self-employed persons to whom regulation 6 applies (but regulation 7 does not apply), the amount calculated in accordance with regulation 6(6):
(c)
for self-employed persons to whom regulation 7 applies, the amount calculated in accordance with regulation 7(6).
(4)
Subclauses (1) to (3) are subject to regulation 5.
5 Maximum earnings on which earners’ levy payable
(1)
The maximum amount of earnings, for the purposes of calculating the earners’ levy for the 2025/26 tax year on which an earner must pay an earners’ levy, is $152,790.
(2)
The maximum amount of earnings, for the purposes of calculating the earners’ levy for the 2026/27 tax year on which an earner must pay an earners’ levy, is $156,641.
(3)
The maximum amount of earnings, for the purposes of calculating the earners’ levy for the 2027/28 tax year, and for any later tax year, on which an earner must pay an earners’ levy, is $160,244.
6 Self-employed person who works more than 30 hours per week and earns less than specified amount
(1)
Subclause (2) applies to a self-employed person who, in the 2025/26 tax year,—
(a)
worked for an average of more than 30 hours per week, whether or not as an employee; and
(b)
earned less than $49,365.
(2)
The person must pay the earners’ levy calculated using the following formula:
1.45 × [($49,365 − a) ÷ 100]
where a is the amount of the person’s earnings as an employee in the 2025/26 tax year.
(3)
Subclause (4) applies to a self-employed person who, in the 2026/27 tax year,—
(a)
worked for an average of more than 30 hours per week, whether or not as an employee; and
(b)
earned less than $50,501.
(4)
The person must pay the earners’ levy calculated using the following formula:
1.52 × [($50,501 − a) ÷ 100]
where a is the amount of the person’s earnings as an employee in the 2026/27 tax year.
(5)
Subclause (6) applies to a self-employed person who, in the 2027/28 tax year, or any later tax year,—
(a)
worked for an average of more than 30 hours per week, whether or not as an employee; and
(b)
earned less than $51,632.
(6)
The person must pay the earners’ levy calculated using the following formula:
1.59 × [($51,632 − a) ÷ 100]
where a is the amount of the person’s earnings as an employee in the tax year.
7 Self-employed person who purchases weekly compensation
(1)
Subclause (2) applies to a self-employed person who, in relation to the 2025/26 tax year, enters into an agreement with the Corporation under section 209 of the Act to purchase weekly compensation.
(2)
The person must pay the earners’ levy calculated using the following formula:
1.45 × [(1.25 × a) ÷ 100]
where a is the agreed level of weekly compensation purchased by the self-employed person under section 209 of the Act adjusted to an annual figure.
(3)
Subclause (4) applies to a self-employed person who, in relation to the 2026/27 tax year, enters into an agreement with the Corporation under section 209 of the Act to purchase weekly compensation.
(4)
The person must pay the earners’ levy calculated using the following formula:
1.52 × [(1.25 × a) ÷ 100]
where a is the agreed level of weekly compensation purchased by the self-employed person under section 209 of the Act adjusted to an annual figure.
(5)
Subclause (6) applies to a self-employed person who, in relation to the 2027/28 tax year, or any later tax year, enters into an agreement with the Corporation under section 209 of the Act to purchase weekly compensation.
(6)
The person must pay the earners’ levy calculated using the following formula:
1.59 × [(1.25 × a) ÷ 100]
where a is the agreed level of weekly compensation purchased by the self-employed person under section 209 of the Act adjusted to an annual figure.
8 Levies exclusive of GST
The amounts of earners’ levies in these regulations are exclusive of any goods and services tax payable on the levy.
9 Amount of levies exempt from payment
(1)
This regulation applies in respect of any invoice that—
(a)
is issued to a self-employed person for the purposes of the Act; and
(b)
includes the earners’ levy.
(2)
The relevant exempt amount for the purposes of section 244 of the Act is $40.
10 Revocation and savings
(1)
The Accident Compensation (Earners’ Levy) Regulations 2022 (SL 2022/30) are revoked.
(2)
Despite subclause (1), the Accident Compensation (Earners’ Levy) Regulations 2022 continue to apply in respect of the period starting on 1 April 2022 and ending on the close of 31 March 2025 as if they had not been revoked.
Rachel Hayward,
Clerk of the Executive Council.
Explanatory note
This note is not part of the regulations but is intended to indicate their general effect.
These regulations, which come into force on 1 April 2025, are made under section 329 of the Accident Compensation Act 2001 (the Act).
These regulations specify the amount of levy payable under section 219(1) of the Act by a person who engages in employment (whether or not as an employee) to fund the Earners’ Account. The amount of earners’ levy payable is as follows:
for the tax year starting on 1 April 2025 and ending on 31 March 2026,—
for self-employed people who, in that tax year, worked an average of more than 30 hours a week and earned less than $49,365, the amount calculated in accordance with regulation 6(2) (see regulation 4(1)(b)):
for self-employed people who have an agreement with the Accident Compensation Corporation (ACC) to purchase weekly compensation, the amount calculated in accordance with regulation 7(2) (see regulation 4(1)(c)):
for all other earners, $1.45 per $100 of earnings in that tax year (see regulation 4(1)(a)):
for the tax year starting on 1 April 2026 and ending on 31 March 2027,—
for self-employed people who, in that tax year, worked an average of more than 30 hours a week and earned less than $50,501, the amount calculated in accordance with regulation 6(4) (see regulation 4(2)(b)):
for self-employed people who have an agreement with ACC to purchase weekly compensation, the amount calculated in accordance with regulation 7(4) (see regulation 4(2)(c)):
for all other earners, $1.52 per $100 of earnings in that tax year (see regulation 4(2)(a)):
for the tax year starting on 1 April 2027 and ending on 31 March 2028, and each subsequent tax year,—
for self-employed people who, in the relevant tax year, worked an average of more than 30 hours a week and earned less than $51,632, the amount calculated in accordance with regulation 6(6) (see regulation 4(3)(b)):
for self-employed people who have an agreement with ACC to purchase weekly compensation, the amount calculated in accordance with regulation 7(6) (see regulation 4(3)(c)):
for all other earners, $1.59 per $100 of earnings in the relevant tax year (see regulation 4(3)(a)).
The maximum amount of earnings on which the earners’ levy is payable is—
$152,790 for the tax year starting on 1 April 2025 and ending on 31 March 2026:
$156,641 for the tax year starting on 1 April 2026 and ending on 31 March 2027:
$160,244 for the tax year starting on 1 April 2027 and ending on 31 March 2028 and each subsequent tax year (see regulation 5).
An amount of earners’ levy calculated in accordance with these regulations is exclusive of goods and services tax (see regulation 8).
These regulations also—
specify the amount of levy that is exempt from payment for the purposes of section 244 of the Act (see regulation 9):
revoke and replace the Accident Compensation (Earners’ Levy) Regulations 2022 (the 2022 regulations) (see regulation 10(1)):
provide that the 2022 regulations continue to apply in relation to the period starting on 1 April 2022 and ending on 31 March 2025 as if they had not been revoked (see regulation 10(2)).
Regulatory impact statement
The Ministry of Business, Innovation, and Employment produced a cost recovery impact statement on 20 November 2024 to help inform the decisions taken by the Government relating to the contents of this instrument.
A copy of this cost recovery impact statement can be found at—
Date of notification in Gazette: 27 February 2025.
These regulations are administered by the Ministry of Business, Innovation, and Employment.
Versions
Accident Compensation (Earners’ Levy) Regulations 2025
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