ACC Levies

01 May, 2020

The wage subsidy received by a self-employed person is not subject to ACC levies. Under section 14 of the ACC Act, the income must be derived from physical exertion before it will be liable for ACC levies.

To ensure the subsidy is not subject to ACC it is important to return it as ‘Other Income’ in the IR3 return. If it is included as part of the ‘Self-Employed Income’ ACC will have no way of identifying whether the amount is liable for ACC levies or not and as a result will charge the levy on the entire amount.