If you've been enjoying an ACC No Claims Discount on your work levy, prepare for a change. From 1 April 2027, the No Claims Discount programme is ending, and your work levy will be calculated on your business activity classification alone. For tradies with historically good safety records, this could mean a meaningful cost increase.
This is a significant regulatory shift that affects every self-employed tradie in New Zealand. Let's break down what's happening, why, and how to prepare.
Why Is ACC Ending the No Claims Discount?
The Accident Compensation Corporation (ACC) introduced the No Claims Discount to incentivise workplace safety. The logic was simple: if your industry or business had a clean safety record, you'd get a discount on your work levy.
But after years of data analysis, ACC and the Ministry of Business, Innovation and Employment (MBIE) found that the discount wasn't delivering its intended benefit. Despite the financial incentive, health and safety outcomes didn't improve significantly compared to businesses without the discount.
More importantly, the current system creates a fairness issue. Businesses outside the No Claims Discount programme effectively subsidise the discounts for those inside it. Removing the programme levels the playing field across all of New Zealand's tradies.
Timeline: What Changes and When
2026 (Levy Year 1 April 2025 – 31 March 2026) Your ACC invoice for this period will still include your No Claims Discount (if you qualify). No changes yet.
2027 (Levy Year 1 April 2026 – 31 March 2027) If you're self-employed, you'll receive an ACC invoice in 2026 that reflects the change. If you remain self-employed throughout the 2027 levy year, the discount disappears from that invoice onwards.
2027 onwards Your work levy is calculated on your business classification unit only—no discount adjustment.
What This Means for Your Levy
Here's where it gets real. Let's look at some practical examples:
Electrician (Single-Trader)
Currently earning $80,000 per year with a 15% No Claims Discount: - Current work levy: ~$1,840/year (before discount) → ~$1,564/year (after discount) - From 2027: ~$1,840/year
That's an extra $276/year out of your pocket.
Plumber (Self-Employed)
Currently earning $100,000 per year with a 20% No Claims Discount: - Current work levy: ~$2,300/year (before discount) → ~$1,840/year (after discount) - From 2027: ~$2,300/year
That's an extra $460/year.
Carpenter (Self-Employed)
Currently earning $120,000 per year with a 10% No Claims Discount: - Current work levy: ~$2,760/year (before discount) → ~$2,484/year (after discount) - From 2027: ~$2,760/year
That's an extra $276/year.
These aren't huge amounts, but they add up—especially if you're running a tight margin or managing cash flow carefully.
What About the Experience Rating Programme?
The Experience Rating programme is not ending. This is important to understand because some tradies confuse the two.
Experience Rating is a separate scheme that adjusts your levy based on your actual claims history. If your business has had workplace injuries, your levy goes up (a loading). If you have a clean record, you get a discount.
Experience Rating will continue beyond 2027, and if you're part of it, your levy adjustments will remain in place—just without the additional No Claims Discount.
Are There Levy Increases Coming?
Yes, but not directly from this change. Separate to the No Claims Discount ending, ACC levy rates are increasing across the board to fund care for work-related injuries.
From 1 April 2026: - Earner levy increased to $1.75 per $100 of liable earnings (from $1.70) - Maximum liable earnings increased to $156,641
For self-employed tradies, this means both your work levy rate and your earner levy contributions are climbing. Combined with the loss of your No Claims Discount from 2027, costs are rising.
How to Prepare Now
1. Review Your Current Levy
Log into MyACC for Business and check: - Your current work levy amount - Whether you're receiving a No Claims Discount - Whether you're in the Experience Rating programme
The discount percentage varies by industry and claims history. Write down the exact amount so you can forecast the impact.
2. Budget for the Change
Calculate your levy increase for 2027 and budget for it now. If you're earning $100,000 and losing a 20% discount, you're looking at an extra $460/year. Add that into your job costings to ensure you're not absorbing the cost.
3. Don't Delay on Health & Safety
Now is the time to double down on workplace safety. Even though the No Claims Discount is ending, the Experience Rating programme continues. Invest in: - Proper safety training - Good PPE and equipment - Documenting near-misses and hazards - Reporting workplace injuries promptly to ACC
A clean claims history still saves you money under Experience Rating.
4. Update Your Tax Planning
Your ACC work levy is fully tax-deductible. Work with your accountant to ensure these changing levies are claimed correctly on your tax return each year. You can also deduct your provisional tax and use accounting software like Xero or MYOB to track these expenses automatically.
5. Use Fastcrew to Track Costs
Managing levy changes, insurance premiums, and tax deductions is easier with the right tools. Fastcrew is a job management app built for NZ tradies, helping you track expenses, invoicing, and compliance in one place. It's worth checking out to streamline your business as costs change.
Questions About Your Specific Situation?
If you're unsure about how this affects you:
- Call ACC: 0800 222 776 (free from Monday to Friday, 8am–5pm)
- Visit: www.acc.co.nz/for-business
- Check MyACC: Log in to see your exact levies and discount status
You can also download our free NZ Tradie Compliance Checklist at tradietools.nz/templates/ to ensure you're on top of all regulatory changes in 2026 and beyond.
The Bottom Line
The ACC No Claims Discount is ending in April 2027, and tradies with clean safety records will see levy increases. Plan now, budget for the change, and continue investing in workplace safety—because even without the discount, a clean claims record still saves you money under Experience Rating.
Recommended Resources
Xero Accounting Software — Cloud-based accounting built for tradies. Free 30-day trial. Learn More
ServiceM8 Job Management — Track jobs, invoicing, and team scheduling. Used by 50,000+ tradies. Learn More
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