An increase in the ACC levy is likely to mean a small reduction in employees’ pay in the next pay period.
From April 1, the levy increased from $1.60 per $100 to $1.67.
That means someone who earns $2000 a week before tax would have their levy increase from $32 to $33.40.
The amount has risen steadily over the years, from $1.39 per $100 in the year to March 31, 2022.
It will rise to $1.75 next year and $1.83 the year after.
John Cuthbertson, of Chartered Accountants Australia and New Zealand, said it should make a small difference to most people.
“From April 1, the ACC levies have changed. ACC recently did a review of its various accounts and found it had shortfalls in most of them. As part of that review, it proposed to increase levies over a period of time. There’s been a small increase.”
He said the amount would be deducted alongside PAYE and anything else taken from an employee’s wages, such as KiwiSaver contributions.
“The other change is there has been a slight increase in the income threshold for the earner’s levy. Previous, it cut off at $142,283; now it’s $152,790. The reality is that [people will have a slight decrease in their pay packet due to the ACC increase. Other than that they shouldn’t notice any other changes unless their employer has been generous and given them a pay rise.”
The minimum wage also increased from April 1, to $23.50.
Employer superannuation contribution tax thresholds have adjusted, which potentially means a lower tax bill on KiwiSaver contributions made by the employer but this does not affect a person’s take-home pay.
rnz.co.nz
