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 2007, revoke and replace the Injury Prevention, Rehabilitation, and Compensation (Earners' Levy) Regulations 2006 (SR 2006/16).
The new regulations provide that the amount of earners' levy payable is,—
•in the case of self-employed persons, except those to whom regulation 6 or 7 applies, $1.1556 per $100 of earnings derived, or treated as being derived, in the tax year that immediately precedes the 2007–08 tax year or, as the case may be, a later tax year; and
•in the case of self-employed persons to whom regulation 6 applies, an amount calculated in accordance with regulation 6(2); and
•in the case of self-employed persons to whom regulation 7 applies, an amount calculated in accordance with regulation 7(2); and
•in the case of other earners, $1.1556 per $100 of earnings that relate to pay periods ending in the 2007–08 tax year or, as the case may be, a later tax year.
The maximum amount of earnings in a tax year of a self-employed person on which the levy is payable has increased from $94,226 to $96,619. The maximum amount of earnings of any other earner in a tax year on which an earners' levy is payable has increased from $96,619 to $99,817.
The level of earnings on which an earners' levy is payable by a self-employed person who works for more than 30 hours per week, whether or not as an employee, has been increased. For those aged 18 or over the amount is $19,760 and for those aged 17 or under it is $15,808.
The new regulations also set, for the purposes of section 244 of the Injury Prevention, Rehabilitation, and Compensation Act 2001 (the Act), the relevant exempt amount for any invoice that is issued to a self-employed person for the purpose of the Act and that includes the earners' levy. The amount is set at $40.
This means that, under section 244 of the Act, a self-employed person is not liable to pay an amount invoiced in relation to the earners' levy if the amount does not exceed $40. Nor is a self-employed person liable to pay any penalties under the Act in respect of non-payment of an amount invoiced in relation to the earners' levy if the amount does not exceed $40.