This note is not part of the regulations, but is intended to indicate their general effect.
These regulations, which come into force on 30 June 1999, provide for—
Regulation 2 interprets various terms used in the regulations. Many of the terms used are already defined in section 464 of the Accident Insurance Act 1998.
Regulation 3 sets out the procedures for payment of base premiums for the 1998/99 premium year, which are basically as described in paragraph (b) above and depend on whether the total amount owing is less than, equal to, or more than the $250 and $2,000 thresholds.
A person who fails to comply with the relevant payment requirements is liable to pay the appropriate penalty prescribed in regulation 9.
Regulation 4 requires the payment of the base 3-month premium within 30 days of when it is invoiced by the ACC.
A person who fails to do so is liable to the appropriate penalty prescribed in regulation 9
Regulation 5 provides for an appropriate proportionate reduction of the base 3-month penalty payable by employers who were not in business for the whole of the 1998/99 premium year and who employed employees who would have had earnings in excess of the specified maximum if they had been employed for the whole year.
Regulation 6 requires the ACC to issue invoices to persons required to pay base premiums, setting out the amount believed owing, the date on which it is due, and, if appropriate, the discount payment date and the various options for payment.
Regulation 7 sets out the requirements of instalment plans. These require payment of an initial instalment, which must be at least a third of the total base premium due, by 1 July 2000, and subsequent instalments on such day of every subsequent month as is advised by the ACC (or such other instalments as may be agreed between the person and the Corporation). Instalment amounts must be of at least $250 (or the equivalent of $250 per month) plus the appropriate interest amount (except where the total amount outstanding is less than $250).
Amounts outstanding can be paid early in a single lump sum, if the person notifies the ACC of their intention to do so on a specified day (which allows the ACC to calculate the exact amount of interest to be included in the lump sum).
The Corporation may cancel an instalment plan if there is a failure to pay the initial instalment or any subsequent instalment.
Regulation 8 provides the interest calculation for amounts outstanding after 30 June 2000 pursuant to the instalment spreading option. The interest rate is 10% per annum.
Regulation 9 provides the penalties for non-payment of the base premiums in the manner (or one of the appropriate manners) provided for in regulations 3 and 4. The penalties are an initial 2% penalty, plus a further 2% at monthly intervals on amounts still outstanding.
Regulation 10 provides that the $250 and $2,000 thresholds in regulation 3 and the minimum $250 instalment in regulation 7 are exclusive of goods and services tax. The calculation of interest and penalties under regulations 8 and 9 are inclusive of goods and services tax.
Regulation 11 relates to the giving of notices.
Regulation 12 provides that the regulations do not limit the ACC's power to agree to an alternative manner and period of payment under section 477(3) of the Accident Insurance Act 1998.