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New Zealand law explained for everyone

Companies Act 1993

Miscellaneous

405: Regulations relating to levies

You could also call this:

“Rules for collecting money from certain groups to help pay for company registration costs”

You need to pay a levy if you’re part of a group of people listed in Schedule 15. The levy goes to the government or someone they choose.

The Governor-General can make rules about these levies when the Minister suggests it. These levies are meant to cover two main things:

  1. Part of the costs for the Registrar to do their job under this Act and other laws listed in Schedule 14. The Minister decides how much of these costs the levies should cover.
  2. The costs of collecting the levy money.

If not enough money is collected in one year, the missing amount can be collected over the next 5 years.

The rules can do many things, like:

  • Say who needs to pay
  • Set how much the levy is
  • Allow for refunds if too much is collected
  • Set different amounts for different groups
  • Apply to a specific time period
  • Require payment even if the rules are made after that time period started
  • Allow for waivers or refunds in some cases
  • Require payment for certain actions, like filing an annual return
  • Set when the levy needs to be paid
  • Add extra charges for late payment

These rules are a type of law that needs to be published and confirmed by another Act. The Legislation Act 2019 has been updated to include these rules.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS791483.

Topics:
Business > Industry rules
Business > Fair trading
Money and consumer rights > Taxes
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404: Purpose of imposing levies, or

“Explaining why the government charges fees for using official registers”

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406: Implementation of levies, or

“How levies are enforced and collected for different company groups”

Part 22 Miscellaneous

405Regulations relating to levies

  1. Every person that is included in a prescribed class of persons listed in Schedule 15 (Schedule 15 persons) must pay to the Crown, or a prescribed person on behalf of the Crown, a levy prescribed by regulations that applies to that class of persons.

  2. The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations providing for the levies.

  3. Levies must be prescribed on the basis that the following costs should be met fully out of the levies:

  4. a portion of the costs of a Registrar in performing or exercising the Registrar’s functions, powers, and duties under this Act, or any of the Acts listed in Schedule 14, where the size of the portion to be met by levies under this Act is determined by the Minister; and
    1. the costs of collecting the levy money.

      1. Levies may be prescribed on the basis that any actual cost that could have been, but has not been, recovered as a levy shortfall for a year may be recovered (along with any financing charge) over any period of up to 5 years.

      2. The regulations may—

      3. specify the class or classes of persons that are required to pay a levy:
        1. specify the amount of levies, or the method of calculating or ascertaining the amount of levies:
          1. include in levies, or provide for the inclusion in levies of, any shortfall in recovering the actual costs:
            1. refund, or provide for refunds of, any over-recovery of the actual costs:
              1. provide for the payment and collection of levies:
                1. provide different levies for different classes of persons:
                  1. specify the financial year or part of a financial year to which a levy applies, and apply that levy to that financial year or part of a financial year and each subsequent financial year until the levy is revoked or replaced:
                    1. require payment of a levy for a financial year or part of a financial year, irrespective of the fact that the regulations may be made after that financial year has commenced:
                      1. provide for waivers or refunds of the whole or any part of a levy for any case or class of cases:
                        1. require the payment of levies for every transaction or any specific transaction (for example an annual return) undertaken by a person involving a register or registers:
                          1. require the levy to be paid as an identifiable part of the overall charge for each transaction or any specific transaction for which a fee is payable:
                            1. specify the timing or circumstances of the requirement to pay levies (including at different times or in different circumstances for the payment of levies for different classes of registered persons):
                              1. specify penalty payments for the late payment of a levy:
                                1. require the payment of interest on overdue levies.

                                  1. Regulations made under this section are—

                                  2. secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements); and
                                    1. must be confirmed by an Act (see subpart 3 of Part 5 of the Legislation Act 2019).

                                      1. Part 1 of Schedule 4 of the Legislation Act 2019 is amended by inserting in the appropriate alphabetical order—

                                        The following table is small in size and has 2 columns. This table amends Part 1 of Schedule 4 of the Legislation Act 2019 and should be read with that table to provide understanding of the context.
                                        Companies Act 1993 405

                                      Notes
                                      • Section 405: inserted, on , by section 4 of the Companies (Levies) Amendment Act 2022 (2022 No 70).