ACC threshold changes
There are ACC threshold, ACC levy and student loan repayment threshold changes coming into effect for the 2018-2019 financial year. They are:
- The annual ACC threshold increases from $124,053 to $126,286
- The maximum ACC levy increases from $1,724.33 to $1,755.37
- The annual student loan repayment threshold for 2018/-2019 is $19,448
C-series paper-based reporting will not be supported from 17 April 2018
C-series is a paper Employer Monthly Schedule (EMS) that is generated by software and then mailed to Inland Revenue. C-Series EMS will no longer be supported from 17 April 2018. Employers will need to file their Employer Monthly Schedule (IR348) online through the Inland Revenue website. If you need to submit an amendment to this form, you’ll need to file the amendment online as well.
Minimum wage increase
The minimum wage rates are reviewed by the government each year and in 2018 an increase is being introduced from 1 April. The minimum wage will increase from $15.75 to $16.50. Further increases are planned to increase minimum wage to $20 by 2021.
An interesting article written by our friends from MYOB on surviving the planned increases: https://www.myob.com/nz/blog/6-steps-survive-thrive-minimum-wage-increase/
Extension of paid parental leave
The extension of paid parental leave is to provide more support to working families with newborns and young children. The Parental Leave and Employment Amendment Bill was passed in November 2017.
It increases the duration of parental leave payments from 18 to 22 weeks from 1 July 2018, with a further increase to 26 weeks from 1 July 2020.
There’s also an increase in Keeping in Touch days from 40 to 52 hours from 1 July 2018, with a further increase to 64 hours from 1 July 2020.
These allow parents to do limited work while on parental leave e.g. attend a team day, annual planning or change announcement.
This is to help workers who are away from their workplace for a longer period to still maintain contact with their employer and keep up to date with any changes, and for the employer to continue to be connected with their employee.