If ACC pays your carer, or you use an agency, ACC or the agency will keep records and take care of the tax on your carer's wages.
When you keep the full payment and do not pay a carer or agency, the following applies.
You need to choose a tax rate
The standard rate of tax for this type of payment is 10.5%. Depending on your circumstances you may need to have a different rate.
To find out more about choosing the right tax rate, read the schedular payments information.
Schedular payments
If you do not complete an ACC84 before ACC makes the first payment, they will deduct tax at the non-declaration rate of 45%.
If you have a tailored tax rate certificate or certificate of exemption, give it to ACC with your ACC84 form.
Your income details
At the end of the tax year, the amount you received from ACC along with the tax credits, will show as schedular income on your income tax assessment.
If you file an Individual income tax return - IR3, the amount will show as schedular payments in your Summary of income. If you file online, we'll add the amount into your online return.
Records you need to keep
You will need to keep the following records for 7 years:
- the date ACC paid you
- how much ACC paid you.
When you only pay part of your payment to your carer or agency, the following applies.
You need to choose a tax rate
The standard tax rate for this type of payment is 10.5%. Depending on your circumstances you may need to have a different rate.
To find out more about choosing your tax rate, read the schedular payments information.
Schedular payments
If you do not complete an ACC84 before the first payment, ACC will deduct tax at the non-declaration rate of 45%.
If you have a tailored tax rate certificate or certificate of exemption, give it to ACC along with the ACC84 form.
Your income details
The payment is recorded as income and shows as schedular payments in your Summary of income.
If you paid only part of the payment to your carer or agency, the amount you keep, including the tax credits, is part of your income. This amount will show in your income tax assessment.
To finalise your income tax assessment, we'll need to confirm how much you paid to your carer or agency. We'll send you a request for this information after the end of the tax year.
If you file an Individual income tax return - IR3 the amount will show as schedular payments in your Summary of income. If you file online it's included in your online return.
Records you need to keep
You will need to keep the following records for 7 years:
- the date ACC paid you
- how much ACC paid you
- the name of each carer or agency you paid
- the date you paid the carer or agency
- how much you paid the carer or agency.
If your partner is your carer
If you pay your partner from your ACC payments, the payments are 'family income'. We'll include the payments when we work out your Working for Families Tax Credit entitlement.
When you paid the full amount to your carer or agency plus any tax credits, the following applies.
Your income details
The payment is recorded as part of your income, it shows as schedular payments in your income tax assessment.
The payment will need to be removed from your income tax assessment.
To finalise your income tax assessment, we'll need to confirm how much you paid to your carer or agency. We'll send you a request for this information after the end of the tax year.
If you file an Individual income tax return - IR3, the amount will show as schedular payments in your Summary of income. If you file online it's included in your online return, and you will need to remove it.
Records you need to keep
You will need to keep the following records for 7 years:
- the date ACC paid you
- how much ACC paid you
- the name of each carer or agency you paid
- the date you paid the carer or agency
- how much you paid the carer or agency.
If your partner is your carer
If you pay your partner from your ACC payments, the payments are 'family income'. We'll include the payments when we work out your Working for Families Tax Credit entitlement.
