Scoop has an Ethical Paywall
Why Your Next Pay Could Be A Little Smaller
Susan Edmunds, Money Correspondent
An increase in the ACC levy is likely to mean a small reduction in employees' pay in the next pay period.
From 1 April, 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 31 March 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 1 April, 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
New Zealand's public broadcaster, providing comprehensive NZ news and current affairs, specialist audio features and documentaries.
Radio New Zealand is a Crown entity established under the Radio New Zealand Act 1995. Radio New Zealand News are vital elements in our programming, providing impartial news and information to New Zealanders every day. Radio New Zealand (RNZ) provides listeners with exciting and independent radio programmes in accordance with the Radio New Zealand Charter.
Natural Hazards Commission: Hub Launched To Empower Architects And Engineers To Build Above Code
Harmony Energy: Ceremony Heralds Start Of Construction On New Zealand’s Largest Solar Farm Project
Stats NZ: Annual Number Of Home Consents Down 7.4 Percent
Plains Media: Plains FM Announces Name Change After 37 Years
NIWA: Flooding From Underneath - New Tool Reveals Shallow Groundwater Elevations
Commerce Commission: Commission Concludes Auckland Airport Over-charging By $190 Million
