1	Title
2	Commencement
3	Principal Act
4	Section 234 amended (Levies may be collected by instalments)
5	Section 329 amended (Regulations relating to levies)
6	Schedule 1AA amended
	Schedule New Part 5 inserted into Schedule 1AA
	Legislative history
	Administrative information

The Parliament of New Zealand enacts as follows:

1 Title

This Act is the Accident Compensation (Interest on Instalment Plans) Amendment Act 2024.

2 Commencement

This Act comes into force on the day after Royal assent.

3 Principal Act

This Act amends the Accident Compensation Act 2001.

4 Section 234 amended (Levies may be collected by instalments)

After section 234(1), insert:

(1A)

The Corporation may charge interest as prescribed by regulations on any levy collected by instalments.

(1B)

The Corporation must consult levy payers on the proposed rate of interest payable on a levy collected by instalments or the proposed method by which the rate is to be calculated before recommending to the Minister that regulations be made prescribing the rate of interest or method by which the rate is to be calculated.

5 Section 329 amended (Regulations relating to levies)

(1)

After section 329(1)(ha), insert:

(hb)

prescribing—

(i)

the rate of interest payable on any levy collected by instalments under section 234 or the method by which the rate is to be calculated:

(ii)

the circumstances in which the payment of the whole or any part of the interest may be remitted or waived:

(2)

After section 329(2), insert:

(2A)

The Minister may not recommend the making of regulations under subsection (1)(hb)(i) unless the Minister has first received and considered a recommendation from the Corporation made in accordance with section 234(1B).

(2B)

Regulations made under subsection (1)(hb)(i) may prescribe different rates of interest, or different methods by which rates are to be calculated, for different periods over which the Corporation collects instalments of a levy.

6 Schedule 1AA amended

In Schedule 1AA,—

(a)

insert the Part set out in the Schedule of this Act as the last Part; and

(b)

make all necessary consequential amendments.

Schedule New Part 5 inserted into Schedule 1AA

s 6

Part 5 Accident Compensation (Interest on Instalment Plans) Amendment Act 2024

16 Interpretation

In this Part,—

2024 Act means the Accident Compensation (Interest on Instalment Plans) Amendment Act 2024

instalment interest has the meaning set out in clause 18(1).

17 Rates of interest payable on levies collected by instalments

Until regulations made under section 329(1)(hb) come into force, the following interest rates apply for the purposes of section 234(1A) (as inserted by the 2024 Act):

(a)

0% on the total amount of levy collected over a 3-month instalment period:

(b)

0% on the total amount of levy collected over a 6-month instalment period:

(c)

2.73% on the total amount of levy collected over a 10-month instalment period.

18 Validation of interest charged on levies collected by instalments

(1)

This clause applies to interest that was charged or purportedly charged by the Corporation on any levy collected by instalments (whether as a fee or as part of a fee under section 234 or otherwise) before the commencement of the 2024 Act (instalment interest).

(2)

The instalment interest, and all actions of the Corporation in fixing the rate of instalment interest and charging the instalment interest, are valid and declared to be and to have always been lawful.

(3)

Money received by the Corporation in payment of instalment interest, whether received before or after the commencement of the 2024 Act, is to be treated as having been lawfully paid to, received by, and applied by the Corporation as if it were part of the levy.

Legislative history

30 May 2024		Introduction (Bill 60–1), first reading, second reading
25 June 2024		Committee of the whole House, third reading
29 June 2024		Royal assent

This Act is administered by the Ministry of Business, Innovation, and Employment.

Accident Compensation (Interest on Instalment Plans) Amendment Act 2024