ACC’s contributions to your mysuper account are subject to Employer Superannuation Contribution Tax (ESCT). This is deducted before payment is made into your mysuper account and will appear on your ACC payslip.
And since your contributions are taxed before they’re added to your retirement savings (PAYE), you won't have to pay any tax when you withdraw your retirement savings – what you see in your final mysuper account balance is what you’ll get.
|Your salary plus employer contribution||Tax Rate|
|Up to $16,800||10.5%|
|$16,801 – $57,600||17.5%|
|$57,601 – $84,000||30%|
|$84,001 and up||33%|
If your salary is $50,000 ACC will contribute $4,500 (9%) towards your savings. However, the $4,500 is taxed at 17.5%, so the actual amount going into your mysuper account each year would be $3,713.
New Zealand Income Tax - this document provides additional information on how New Zealand income tax will impact on your investment in mysuper.