Many businesses use ACC instalment plans to spread the cost of their levy invoices and help manage cashflow. From 1 April 2026, those arrangements are no longer interest-free.
ACC now charges interest on all new and rolled-over instalment plans. The option to pay over time remains available, but businesses should factor the additional cost into their budgeting.
For example, a $10,000 ACC levy paid over six months will incur around $208 in interest. Over ten months, the interest cost increases to approximately $346.
ACC has also changed the way interest is charged on overdue levies. Interest now accrues monthly on unpaid amounts, making late payment potentially more expensive than entering into an agreed instalment arrangement.
If your business can comfortably pay the levy in full, you'll avoid interest charges altogether. However, if cashflow is tight, an instalment plan may still be a sensible option. The important thing is understanding the total cost before making your decision.
Final word: When your ACC invoice arrives, look beyond the monthly payment amount and consider the total cost, including interest. A payment plan may still be the right choice, but it's worth knowing exactly what it will cost your business.
