Commodity Levies Act 1990

Levy orders

7: Effect of orders

You could also call this:

"What happens when an order is made to pay a levy"

Illustration for Commodity Levies Act 1990

When a levy order is made, you have to pay a levy to an industry organisation if you are responsible for paying it. You must pay the levy to the organisation as stated in the order. The organisation can get the levy back from you if you do not pay it, by taking it from any money they owe you or by taking you to court.

If you are responsible for paying the levy, any money that should be paid to the organisation is considered to be held in trust for them until it is paid. This means you are looking after the money for the organisation until you pay it to them. If someone else is supposed to pay the levy but you paid it instead, you can get the money back from them, either by taking it from any money you owe them or by taking them to court.

Nothing in a levy order stops information from being shared with the Government Statistician to help with official statistics or research under the Data and Statistics Act 2022.

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This page was last updated on 30 August 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM227332.

Topics:

Business > Industry rulesMoney and consumer rights > Taxes

6: Matters to be specified in orders, or

"What a levy order must include, like who pays and how the money is used"

8: Conscientious objectors, or

"Paying a levy in a different way because of your beliefs or religion"

Part 1Levy orders

7Effect of orders

Where a levy order has been made imposing on any commodity a levy payable to any industry organisation, the following provisions shall, in accordance with the order, apply:
every person responsible for paying the levy to the organisation shall do so:
the organisation may recover the levy from any person responsible for paying it to the organisation—
1. by deducting it from any amount the organisation owes the person; or
2. as a debt due in any court of competent jurisdiction:
where a person responsible for paying the levy to the organisation—notwithstanding any rule of law to the contrary, the amount deducted or (if the larger amount from which it is required to be deducted is still in the person's possession) required to be deducted shall, until it has been paid to the organisation, be deemed to be money held in trust for the organisation:
1. is not primarily responsible for paying any amount of the levy; but
2. is required to deduct that amount from any amount the person owes the person primarily responsible, and pay it to the organisation,—
where a person responsible for paying the levy to the organisation—the organisation may recover from the person to whom or which the other amount was paid the amount of the deduction that should have been made, as if the person is a person responsible for paying it to the organisation:
1. is not primarily responsible for paying any amount of the levy; and
2. is required to deduct that amount from any amount the person owes the person primarily responsible, and pay it to the organisation; and
3. fails to make the full deduction required before paying the amount owed to the person who is owed it,—
where a person who has paid the levy to the organisation is not the person primarily responsible for paying it, the former may recover the amount paid from the latter—
1. by deducting it from any amount the former owes the latter; or
2. as a debt due in any court of competent jurisdiction.

Nothing in a levy order limits or prevents the provision of information to the Government Statistician for the production of official statistics or research under the Data and Statistics Act 2022.

Notes

Section 7(2): inserted, on 1 September 2022, by section 107(1) of the Data and Statistics Act 2022 (2022 No 39).