ACC Levies

At CIC Financial, we help you to understand your options with your ACC Levies, and make sure these are structured most efficiently and effectively.

Are you self-employed or do you own your own business?

Do you have trouble understanding what ACC levies are for? Often, we find that there is a lack of understanding as to what ACC actually provides.

For most self-employed people, the first ACC bill they receive comes as a shock. For those that have been around longer, it’s just accepted and paid like a tax.

How we make it work for You

There are two main outcomes we can achieve through reviewing your ACC and optimising your plan:

1. Save money on your levies and/or
2. Strengthening your cover, to make it easier for you to claim and get what you’ve paid for.

The good news is that you do have options with your ACC levies through ACC Coverplus Extra. We can explain the benefits and risks of converting to ACC Coverplus Extra and whether it’s suitable for you. We work with many Accountants to provide this service to their clients.

ACC is great, we are lucky to have it in New Zealand. However, it does have its limits. It covers accidents only. Not degenerative conditions. Not an Illness. This means no covers for cancer, strokes, heart attacks or mental illness.

The income replacement cover is on the key foundations of long-term wealth. Fortunately, by reviewing your ACC and Income Replacement at the same time, you can make sure this works most efficiently. Possibly reallocating funds from ACC into your Income Replacement.

We follow a comprehensive process to determine if this is right for you, and we will take you through the advantages and disadvantages of doing so.

We also look at all of the options around income replacement and help you to understand what you are getting. It can all be rather confusing so it breaks it all down in a clear, visual way for you.

An example of how ACC can work for You

Bill and Margaret own a roofing business. Bill manages the team and does some roofing work. Margaret manages the business. Bill earns $124,000 and Margaret $64,000. Through adjusting their ACC we can give them the following options:

Margaret is being charged ACC levies based on the business classification of a roofing business. By changing to an administration role, Margaret could save approximately $1,600 per year on ACC levies.

Bill and Margaret could adjust their current level of ACC cover for accidents, potentially saving $6,300 per year that could be used for more comprehensive private income and life insurance.