Are You Overpaying Your ACC Levies?

Here’s Why Many NZ Businesses Are Losing Money

Many New Zealand businesses and self-employed individuals are unknowingly paying too much in ACC levies. In fact, research shows that up to 75% of businesses may be overpaying!

This happens for several reasons, from incorrect classifications to unclaimed refunds. The good news? With a little attention, you can reduce your ACC costs and only pay what’s fair.

Why Are So Many Businesses Overpaying ACC?

There are four main reasons why businesses pay more than they should:

1. Misclassification of Your Business Activity

ACC charges levies based on risk level. If your business is placed in the wrong category, you could be paying a higher rate than necessary. Double-checking your classification can lead to instant savings.

2. Not Choosing the Right Cover

Many self-employed people are automatically placed in ACC CoverPlus, but CoverPlus Extra allows you to set your own level of cover—often at a lower cost. If you haven’t looked into this, you might be missing out on a cheaper and more flexible option.

3. Reporting Incorrect Income

ACC levies are based on your liable income, but some businesses overestimate their earnings. If your actual income is lower than what’s on record, you could be paying too much. Regularly reviewing and updating your details helps keep costs in check.

4. Missing Out on Refunds

ACC has refunded millions of dollars to businesses over the years, but many haven’t claimed what they’re owed. If you’ve changed business activities, reduced income, or been misclassified in the past, you might be due a refund.

How to Avoid Overpaying ACC Levies

• Check your classification: Make sure your business is in the correct levy category.
• Review your income: Ensure you’re only paying for what’s required.
• Consider CoverPlus Extra: It might be a better (and cheaper) fit for your needs.
• Talk to an expert: A tax and business advisor can help you pay the right amount and even claim refunds.

At SME Financial, we’ve partnered with Accelerate Engine to help businesses like yours manage ACC levies and save money. If you’re unsure whether you’re overpaying, get in touch today!

Together we can achieve more!