ACC for Investors

Passive income is not subject to ACC.  But Beware!  

ACC now state that, to be passive, an owner can't contribute either physically or mentally (for example, by managing for property maintenance to be undertaken by a contractor).

ACC now have the opinion that any rental property that you manage yourself is not passive so any profit from that property would be subject to ACC.  They now only consider a rental property managed by an agent to be passive.  

So, if you have a rental property making a profit, I wouldn't be surprised if you get an invoice from ACC.  And, if you call them to question why they are sending you the invoice, it's in your best interests to tell them that the property is managed by an agent so you can show that you have no physical or mental contribution towards that rental profit.

Disclaimer: The above article is general in nature and we recommend you seek professional advice tailored to your specific personal situation.