The Inland Revenue Department (IRD) has published the new rates for Accident Compensation Corporation (ACC) Levy and Employer savings contribution tax (ESCT) & Retirement savings contribution tax (RSCT)  rate changes for the year 2025-26, effective 1st April 2025.  Update also includes the taxation to be followed for Extra Pay paid to employees when the employment Ends.

 

The Key highlights are:

 

  1. The Earners’ (ACC) Levy rate per $100 of liable earnings (incl. GST (Goods and Services Tax)) at $1.67 and the maximum liable earnings limit for ACC earners levy has increased to NZ$152,790.

 

  1. From 1 April 2025, new ESCT threshold rates will be applicable for the year 2025-26.

 

  1. PAYE rate, which was effect from 31st July 2024, will be used for calculating the tax on the Extra Pay & Lumpsum payments.

  

  1. Student loan deduction rates and thresholds for the year 2025 -2026 are yet to be published IRD , our position statement will be revised once IRD releases the new threshold rates.

 

 

Our new Position Statement for 2025 is now updated with the details of the changes. We encourage our customers to review the latest statement to keep up to date. The updated Position Statement can be found on My Oracle Support, Doc ID 2973834.1