Accident Compensation (Earners' Levy) Regulations 2014

  • revoked
  • Accident Compensation (Earners’ Levy) Regulations 2014: revoked, on 1 April 2015, by regulation 10(1) of the Accident Compensation (Earners’ Levy) Regulations 2015 (LI 2015/37).

Reprint as at 1 April 2015

Coat of Arms of New Zealand

Accident Compensation (Earners’ Levy) Regulations 2014

(LI 2014/30)

Jerry Mateparae, Governor-General

Order in Council

At Wellington this 24th day of February 2014

Present:
His Excellency the Governor-General in Council

Accident Compensation (Earners’ Levy) Regulations 2014: revoked, on 1 April 2015, by regulation 10(1) of the Accident Compensation (Earners’ Levy) Regulations 2015 (LI 2015/37).

Note

Changes authorised by subpart 2 of Part 2 of the Legislation Act 2012 have been made in this official reprint.

Note 4 at the end of this reprint provides a list of the amendments incorporated.

These regulations are administered by the Ministry of Business, Innovation, and Employment.

Pursuant to sections 218, 219, 244, and 329 of the Accident Compensation Act 2001, His Excellency the Governor-General, acting on the advice and with the consent of the Executive Council and on the recommendation of the Minister for ACC, makes the following regulations.

Regulations

1 Title

These regulations are the Accident Compensation (Earners’ Levy) Regulations 2014.

2 Commencement

These regulations come into force on 1 April 2014.

3 Interpretation

In these regulations, unless the context otherwise requires,—

applicable tax year means the 2014–15 tax year or, as the case may be, a later tax year

Corporation means the Accident Compensation Corporation

current portion, in relation to the earners’ levy, means a portion of that levy to provide for the purposes referred to in section 218(5)(a) of the Act

earners’ levy means the levy payable to fund the Earners’ Account under section 219(1) of the Act

residual portion, in relation to the earners’ levy, means a portion of that levy to provide for the purposes referred to in section 218(5)(b) of the Act

tax year has the same meaning as in section YA 1 of the Income Tax Act 2007 for the purposes of furnishing a return of income under the Tax Administration Act 1994.

4 Earners’ levy

(1)

The amount of the current portion of the earners’ levy payable for any applicable tax year is,—

(a)

for self-employed persons, except those described in paragraphs (b) and (c), $1.2226 per $100 of earnings derived, or treated as being derived, in the tax year that immediately precedes the applicable tax year:

(b)

for self-employed persons to whom regulation 6 applies (but regulation 7 does not apply), an amount calculated in accordance with regulation 6(2):

(c)

for self-employed persons to whom regulation 7 applies, an amount calculated in accordance with regulation 7(2):

(d)

for other earners, $1.2226 per $100 of earnings for pay periods ending in the applicable tax year.

(2)

The amount of the residual portion of the earners’ levy payable for any applicable tax year is,—

(a)

for self-employed persons, except those described in paragraph (b), $0.0374 per $100 of earnings derived, or treated as being derived, in the tax year that immediately precedes the applicable tax year:

(b)

for self-employed persons to whom regulation 6 applies, an amount calculated in accordance with regulation 6(3):

(c)

for other earners, $0.0374 per $100 of earnings for pay periods ending in the applicable tax year.

(3)

Subclauses (1) and (2) are subject to regulation 5.

5 Maximum earnings on which earners’ levy payable

(1)

The maximum amount of earnings in a tax year on which a self-employed person must pay an earners’ levy is $116,089.

(2)

The maximum amount of earnings in a tax year on which any other earner must pay an earners’ levy is $118,191.

6 Self-employed person: works more than 30 hours per week and earns less than specified amount

(1)

This regulation applies to a self-employed person who, in the tax year that immediately precedes the applicable tax year,—

(a)

worked for an average of more than 30 hours per week, whether or not as an employee; and

(b)

earned less than $28,600.

(2)

The person must pay the current portion of the earners’ levy calculated using the following formula:

$28,600 − earnings as an employee×1.2226
100

(3)

The person must also pay the residual portion of the earners’ levy calculated using the following formula:

$28,600 − earnings as an employee×0.0374
100

(4)

In the formulae in subclauses (2) and (3), earnings as an employee is the amount of the person’s earnings as an employee in the tax year that immediately precedes the applicable tax year.

7 Self-employed person: purchases weekly compensation

(1)

This regulation applies to a self-employed person who enters into an agreement with the Corporation under section 209 of the Act to purchase weekly compensation.

(2)

The person must pay the current portion of the earners’ levy calculated using the following formula:

1.2226 × 1.25 × a
100

where—

a

is the agreed level of weekly compensation purchased by the self-employed person under section 209 of the Act adjusted to an annual figure.

8 Levies exclusive of GST

The amounts of earners’ levies in these regulations are expressed exclusive of any goods and services tax payable.

9 Amount of levies exempt from payment

(1)

This regulation applies to any invoice that—

(a)

is issued to a self-employed person for the purposes of the Act; and

(b)

includes the earners’ levy.

(2)

The relevant exempt amount for the purposes of section 244 of the Act is $40.

10 Revocation and saving

(2)

Despite subclause (1), the Accident Compensation (Earners’ Levy) Regulations 2013 continue to apply to the period starting on 1 April 2013 and ending with the close of 31 March 2014 as if they had not been revoked.

Michael Webster,
for Clerk of the Executive Council.

Explanatory note

This note is not part of the regulations, but is intended to indicate their general effect.

These regulations, which come into force on 1 April 2014, prescribe the current and residual portions of the earners’ levy payable by people who engage in employment (whether self-employed or not).

For self-employed people, the earners’ levy is calculated using earnings derived in the previous tax year. For all other earners, the levy is calculated using earnings in the applicable tax year.

The regulations also prescribe—

  • maximum liable earnings for all earners; and

  • a specified amount on which the earners’ levy is payable by self-employed people who, in the previous tax year, worked full-time (ie, more than 30 hours a week) but earned less than the specified amount; and

  • a different rate for the current portion of the earners’ levy payable by self-employed people who have an agreement with ACC to purchase weekly compensation.

The regulations revoke and replace the Accident Compensation (Earners’ Levy) Regulations 2013.

Issued under the authority of the Legislation Act 2012.

Date of notification in Gazette: 27 February 2014.

Reprints notes
1 General

This is a reprint of the Accident Compensation (Earners’ Levy) Regulations 2014 that incorporates all the amendments to those regulations as at the date of the last amendment to them.

2 Legal status

Reprints are presumed to correctly state, as at the date of the reprint, the law enacted by the principal enactment and by any amendments to that enactment. Section 18 of the Legislation Act 2012 provides that this reprint, published in electronic form, has the status of an official version under section 17 of that Act. A printed version of the reprint produced directly from this official electronic version also has official status.

3 Editorial and format changes

Editorial and format changes to reprints are made using the powers under sections 24 to 26 of the Legislation Act 2012. See also http://www.pco.parliament.govt.nz/editorial-conventions/.

4 Amendments incorporated in this reprint

Accident Compensation (Earners’ Levy) Regulations 2015 (LI 2015/37): regulation 10(1)