Payroll compliance changes for 2025–2026 - NZ
This page explains the compliance changes related to MYOB Acumatica — Payroll for the 2025-26 tax year. To keep you compliant, when you open a pay with a physical pay date of 1 April 2025 or later, MYOB Acumatica — Payroll automatically applies these new tax rates and thresholds.
For more details, see payroll calculations and business rules on the IR website.
Once you're familiar with the changes, you can start preparing for the end of the 2024 tax year.
ACC earner's levy changes
The ACC levy deduction is included in the PAYE amount displayed on the Employee's Current Pay form (MPPP3130).
| 2024-25 tax year value | 2025-26 tax year value | |
| ACC earner levy rate | 1.6% | 1.67% |
| ACC income maximum | $142,283.00 |
$152,790.00 |
| Maximum ACC earner levy | $2,276.52 |
$2,551.59 |
Minimum wage increase
| 2024-25 tax year wage | 2025-26 tax year wage | |
| Adults | $23.15 | $23.50 |
| Starting-out and training | $18.52 | $18.80 |
Extra pay tax calculation when employment ends
Inland Revenue (IR) have changed how employers must calculate the marginal tax rate when an employee receives an extra payment as part of a termination payment.
From 1 April 2025, you must calculate the employee's annualised income by identifying what they've earned over the last two paid pay periods before their termination payment.
To stay compliant with this change, you need to upgrade to version 2024.1.3 or 2023.1.8. We've added a new Annualised Income field to these versions.
Previously, annualised income was based on payments from the last four weeks. For other (non-termination) taxable extra payments, the existing four week rule continues to apply.
Student loan threshold stays the same
These thresholds remain unchanged from last year, so the same thresholds apply from 1 April 2025.
|
Frequency |
2025-26 tax year value |
|---|---|
|
Annual threshold |
$24,128 |
|
Monthly pay period (threshold divided by 12) |
$2,010.67 |
|
Fortnightly pay period (threshold divided by 26) |
$928 |
|
Weekly pay period (threshold divided by 52) |
$464 |
Income tax (PAYE) stays the same
These tax rates took effect from 31 July 2024 and there is no change from 1 April 2025.
|
Income range |
Tax rates |
|---|---|
|
$0 - $15,600 |
10.5% |
|
$15,601 - $53,500 |
17.5% |
|
$53,501 - $78,100 |
30% |
|
$78,101 - $180,000 |
33% |
|
$180,001 and above |
39% |
Independent earner tax credit (IETC) thresholds stay the same
These thresholds took effect from 31 July 2024 and there is no change from 1 April 2025.
|
Lower Threshold |
$24,000 |
|
Upper Threshold |
$70,000 |
|
Abatement starts |
$66,000 |