Jerry Mateparae, Governor-General
At Wellington this 22nd day of February 2016
Present:The Right Hon John Key presiding in Council
These regulations are made under sections 218, 219, 244, and 329 of the Accident Compensation Act 2001—
on the advice and with the consent of the Executive Council; and
on the recommendation of the Minister for ACC made after complying with the consultation requirements of sections 330 and 331 of that Act.
These regulations are the Accident Compensation (Earners’ Levy) Regulations 2016.
These regulations come into force on 1 April 2016.
In these regulations, unless the context otherwise requires,—
Act means the Accident Compensation Act 2001
applicable tax year means the 2016–17 tax year or, as the case may be, a later tax year
Corporation means the Accident Compensation Corporation
earners’ levy means the levy payable to fund the Earners’ Account under section 219(1) 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.
The amount of earners’ levy payable for an applicable tax year is,—
for self-employed persons, except those described in paragraphs (b) and (c), $1.21 per $100 of earnings derived, or treated as being derived, in the tax year that immediately precedes the applicable tax year:
for self-employed persons to whom regulation 6 applies (but regulation 7 does not apply), the amount calculated in accordance with regulation 6(2):
for self-employed persons to whom regulation 7 applies, the amount calculated in accordance with regulation 7(2):
for other earners, $1.21 per $100 of earnings for pay periods ending in the applicable tax year.
Subclause (1) is subject to regulation 5.
The maximum amount of earnings in a tax year on which a self-employed person must pay an earners’ levy is $120,070.
The maximum amount of earnings in a tax year on which any other earner must pay an earners’ levy is $122,063.
This regulation applies to a self-employed person who, in the tax year that immediately precedes the applicable tax year,—
worked for an average of more than 30 hours per week, whether or not as an employee; and
earned less than $30,680.
The person must pay the earners’ levy calculated using the following formula:
1.21 × [($30,680 − earnings as an employee) ÷ 100]
In the formula in subclause (2), 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.
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.
1.21 × [(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.
The amounts of earners’ levies in these regulations are exclusive of any goods and services tax payable on the levy.
This regulation applies to any invoice that—
is issued to a self-employed person for the purposes of the Act; and
includes the earners’ levy.
The relevant exempt amount for the purposes of section 244 of the Act is $40.
The Accident Compensation (Earners’ Levy) Regulations 2015 (LI 2015/37) are revoked.
Despite subclause (1), the Accident Compensation (Earners’ Levy) Regulations 2015 continue to apply to the period starting on 1 April 2015 and ending with the close of 31 March 2016 as if they had not been revoked.
Michael Webster,Clerk of the Executive Council.
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 2016, prescribe 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
the rate for 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 2015.
The Ministry of Business, Innovation, and Employment produced a regulatory impact statement on 25 November 2015 to help inform the decisions taken by the Government relating to the contents of this instrument.
A copy of this regulatory impact statement can be found at—
Issued under the authority of the Legislation Act 2012.
Date of notification in Gazette: 25 February 2016.
These regulations are administered by the Ministry of Business, Innovation, and Employment.