ACC Levies for New NZ Companies: A 2026 Guide

Why new NZ companies get surprised by ACC

Within weeks of registering a new company, many directors receive an ACC invoice they did not budget for. ACC (Accident Compensation Corporation) covers work-related injuries in New Zealand, and every business with employees or self-employed income must pay levies. For a newly incorporated company, this can feel like an unexpected cost at the worst possible time.

How ACC levies are calculated

ACC levies have three components:

• Work levy: Based on your industry (ANZSCO classification) and payroll. Rates vary from under 0.1% for low-risk office work to over 2% for high-risk trades and construction.
• Earners levy: A flat rate on all wages and salaries (approximately 1.39 cents per dollar of liable earnings in 2026). All employers withhold and pay this on behalf of employees.
• Working Safer levy: A small flat levy (around 8 cents per $100) collected by WorkSafe NZ for workplace safety funding.

For a new company with one director taking a salary of NZ$80,000 in a medium-risk industry, total ACC levies could easily reach NZ$1,500 or more in year one.

When does the first invoice arrive?

ACC invoices typically arrive in the April following the end of your first tax year. If you register your company in March 2026 and begin paying yourself a salary, expect your first ACC invoice around April 2027. However, if you have employees from day one and run payroll, ACC earners levies are collected via PAYE immediately through Inland Revenue.

Industry classification matters

Your ANZSCO industry code determines your work levy rate. If your business is classified incorrectly, you may overpay. New companies are often assigned a default code based on their registered activity description. An accountant can review your classification and apply for a reclassification if needed, which can result in significant savings over time.

Cover-plus vs Cover-plus extra

Self-employed directors and working shareholders have a choice:

• CoverPlus: Default cover. ACC pays 80% of your previous year earnings if you cannot work due to injury. Levies are based on your actual taxable income from the prior year.
• CoverPlus Extra (CPX): An agreement with ACC to set a fixed level of cover (minimum NZ$26,104 in 2026), regardless of income fluctuations. Useful for directors who take dividends rather than salary, or whose income varies year to year.

Many new company directors choose CPX in year one to reduce levy costs while their business is still growing.

How accountants add value around ACC

A good accountant or bookkeeper will:

• Review your industry classification when you incorporate and flag if the code seems wrong
• Discuss CoverPlus Extra for working shareholders who take dividends
• Ensure PAYE is set up correctly so earners levies are deducted and paid on time
• Budget for the ACC invoice in your first year cashflow forecast
• Alert you to ACC audit risk if your claimed income is well below market rate

Finding new companies early gives accountants the chance to have this conversation before the first invoice arrives, rather than explaining it after the fact.

ACC and new company registration: the timing window

The first 60 days after a company registers is the ideal window to set up payroll, PAYE, ACC arrangements, and KiwiSaver correctly. Companies that get this right in year one avoid the compliance catch-up that can be costly to unwind. Services like FreshFirms notify accountants and bookkeepers the moment a new company registers in their region, so they can reach out during this exact window.

Key ACC dates for new employers

• PAYE and earners levy: Monthly or twice-monthly via myIR (due 20th of the following month)
• Work levy invoice: Issued by ACC annually, usually April
• CPX application: Must be lodged before the end of the tax year for the following year

Getting the right professional advice early means new NZ companies avoid unpleasant surprises and build a compliant foundation from day one.