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Accident Compensation Act 2001

Management of the Scheme - Work Account

169A: Limit on offsets in case of earnings as self-employed person

You could also call this:

"Rules for calculating self-employed earnings for injury compensation"

When you work for yourself, there are some rules about how your earnings are calculated. These rules are important because they affect how much money you might get if you're injured and can't work.

If you've lost money in your business in past years, you can't use those losses to lower your current earnings. This is true even if you're allowed to do this for your taxes. The same rule applies if you own part of a special type of company that has made a loss.

If you work for yourself and also have a job working for someone else, there's another rule to know about. If your self-employment work shows that you've lost money, you can't use that loss to reduce the money you've earned from your other job.

These rules are there to make sure that your earnings are calculated fairly when it comes to accident compensation. They help to protect the money you might receive if you get hurt and can't work.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM101888.

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Health and wellbeing > Healthcare servicesWork and jobs > Worker rightsWork and jobs > Workplace safety
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Part 6Management of the Scheme
Work Account

169ALimit on offsets in case of earnings as self-employed person

  1. In determining a person's earnings as a self-employed person, no offset may be allowed for the amount of—

  2. any net loss of the person for an earlier tax year that might otherwise be offset by the person under sections IA 1 to IA 4, IA 7(9) and IA 9 of the Income Tax Act 2007; or
    1. any part of the net loss of a loss attributing qualifying company (as defined in section YA 1 of the Income Tax Act 2007) attributable to the person as a shareholder of that company under sections HA 20, HA 24, HA 26, HA 27, and IA 7(2) of the Income Tax Act 2007.

      1. If the result of the calculation of a person's earnings as a self-employed person is a negative amount and the person also derives earnings as an employee, the person's earnings as an employee must not be reduced by the negative amount.

      Notes
      • Section 169A: inserted, on , by section 7 of the Injury Prevention, Rehabilitation, and Compensation Amendment Act 2007 (2007 No 8).
      • Section 169A(1)(a): amended, on (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).
      • Section 169A(1)(b): amended, on (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).