Partnership income earned as a result of “active” (physical or administration) involvement is liable for ACC levies, which will be invoiced by ACC.  If your involvement in the partnership income is an administration only role we can change your classification to “administration”.

If your share of this income is received in recognition of your capital investment in the partnership and you did not take any active (physical or administration) part in the day-to-day operation or management of the business, then you are not eligible for ACC levies.

Income is considered passive if a person does no mental or physical work to generate their income.  In operating a company that declares salary to shareholder employees of that company, that is active income and will be invoiced by ACC.

Comments are closed.