Law changes – How does it apply to your business?

Drop in ACC Work levies

When: From April 2019

What: Employers and people who are self-employed will on average pay 6.9 percent less for their ACC Work Account levy over the coming two years.

Why: This reduction comes after standard public consultation.

What you need to do – Good news : Nothing. If you’re a small business owner, ACC will update your levies for you.

**Note that if you’re self-employed, ACC is also changing the way you’re levied. In future, the income from your tax return will be used to calculate your levy for the same year. ACC will begin talking to self-employed people about this in April 2019. You can read more about what this means for self-employed people on the page below.


Rise in minimum wage

When: 1 April 2019

What: The new minimum wage rates, before tax, are:

  • Adult — $17.70 an hour
  • Starting-out — $14.16 an hour (up from $13.20)
  • Training — $14.16 an hour (up from $13.20)

Starting-out and training minimum wages are 80% of the adult minimum wage.

Why: Government must by law review the minimum wage rates every year.

What you need to do:  If your employment agreements are a few years old, you can use this as a chance to update them using our Employment Agreement Builder. It’s a legal requirement to have a written employment agreement with all your staff.


Employers switch to payday filing

When: 1 April 2019

What: All employers need to switch to payday filing.

Why: To simplify tax processes.

What you need to do: If your business pays $50,000 or more a year in PAYE tax and Employer Superannuation Contribution tax, you have to file electronically from 1 April 2019. You can still file on paper if you pay less than $50,000.

Businesses should make sure they’re ready for payday filing.

  • If you’re using software, check it’s payday compatible.
  • If you’re filing through myIR, make sure you’re familiar with the Payroll account.
  • If you’re filing on paper, get used to the new forms you’ll have to fill in. You’ll have received them automatically in late March if you’re currently filing monthly employer schedules on paper.

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