ACC - Tax Deduction For Levies

Question

I have a client working as a sole trader. Can we claim the entire ACC invoice (work account levy, earners levy and working safer levy) as a business expense? He has no other activity or income other than business.

Answer

The Earners' Levy portion of the ACC Levy cannot be claimed as a tax deductible expense. This applies whether they are on salary and wages, self-employed, a partner in a partnership, or a shareholder- employee. This rule also applies to ACCCoverPlus and ACC CoverPlus Extra.