ACC Levies Explained for NZ Sole Traders and Tradies
ACC levies are one of the least understood costs for self employed people in New Zealand.
They are not a tax, but they behave like one if you are not prepared.
How ACC Levies Are Calculated
ACC uses your previous year's net profit.
If your income jumps one year, your ACC bill increases later.
This delay catches many new tradies off guard.
Why Levies Change So Much
Levies change due to:
- Income fluctuations
- Industry risk rating
- Cover Plus vs Cover Plus Extra
- Payment option chosen
How to Reduce ACC Stress
Practical steps:
- Set money aside monthly
- Use Cover Plus Extra for predictability
- Treat ACC as a fixed cost, not a surprise
Summary
ACC is manageable once you understand the timing. Problems usually come from ignoring it until the bill arrives.
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