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Accident Compensation Act 2001

Management of the Scheme - Work Account

170: Classification of industries or risks

You could also call this:

“How ACC groups jobs to set work accident insurance costs”

The Corporation must put employers and self-employed people into groups based on what kind of work they do. These groups are called industries or risk classes. The Corporation uses these groups to decide how much money employers and self-employed people need to pay for work-related accident insurance.

If an employer does more than one type of work, the Corporation usually puts all their employees in the group that costs the most money. But if the employer asks and meets certain rules, the Corporation might put their employees in different groups.

The government makes rules about how much money each industry or risk group needs to pay. These rules might be different for employers and self-employed people until 2010, but after that, they must be the same.

The Corporation decides which group is right for each employer or self-employed person. They keep track of how much money each group pays and how much is spent on each group.

If an accident costs money for more than one group, the Corporation shares the cost fairly between those groups.

The Corporation can let employers or self-employed people figure out which group they should be in by themselves.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM101890.

Topics:
Work and jobs > Workplace safety Money and consumer rights > Taxes Business > Industry rules
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Part 6 Management of the Scheme
Work Account

170Classification of industries or risks

  1. For the purpose of setting levies payable under sections 168, 168B, and 211, the Corporation must classify an employer and a self-employed person in an industry or risk class that most accurately describes their activity, being an industry or risk class set out in regulations made under this Act.

  2. If an employer is engaged in 2 or more activities, the Corporation must classify all the employer's employees in the classification unit for whichever of those activities attracts the highest levy rate under the regulations.

  3. Despite subsection (2), the Corporation may classify the employer's employees in separate classification units for different activities if the employer meets the threshold (if any) specified in regulations and if—

  4. the employer so requests; and
    1. the employer is engaged in 2 or more distinct and independent activities; and
      1. each of those activities provides services or products to external customers in such a way that each activity could, without adaptation, continue on its own without the other activities; and
        1. accounting records are maintained by the employer to the satisfaction of the Corporation that—
          1. demonstrate the separate management and operation of each activity; and
            1. allocate to each activity the earnings of employees engaged solely in that activity.

            2. Regulations made under this Act must prescribe a Work Account levy for each industry or risk class defined under subsection (1).

            3. The regulations referred to in subsection (4) that relate to an industry or risk class defined under subsection (1)(a)—

            4. may, until the end of the 2009–10 tax year, prescribe the levies at different rates for employers and self-employed persons classified in the same industry or risk class; and
              1. must, until the end of the 2009–10 tax year, prescribe the levies at a rate that does not increase or decrease the levy rate payable by employers or self-employed persons in a particular industry or particular risk class by more than 25% of the rate payable in the previous tax year; and
                1. must, after the end of the 2009–10 tax year, prescribe the levies at the same rate for employers and self-employed persons classified in the same industry or risk class.

                  1. The Corporation must decide which industry or risk class is appropriate in relation to any employer or self-employed person by whom a levy is payable, and section 239 applies if the classes defined by the regulations do not specifically cover a particular activity.

                  2. The Corporation must separately account for the amounts—

                  3. collected from each industry or risk class under sections 168, 168B, and 211; and
                    1. expended for the purposes of section 167(3) in respect of each industry or risk class.

                      1. If costs relating to a particular claim are attributable to more than 1 industry or risk class, the Corporation must apportion those costs in a way that reasonably represents the relative costs to each of those industry or risk classes.

                      2. Nothing in this section prevents the Corporation from making arrangements to enable employers or self-employed persons to carry out self-assessments for the purposes of this section.

                      Notes
                      • Section 170(1): replaced, on , by section 336A(3).
                      • Section 170(3): amended, on , by section 4 of the Injury Prevention, Rehabilitation, and Compensation Amendment Act (No 2) 2003 (2003 No 80).
                      • Section 170(4): substituted, on , by section 8(2) of the Injury Prevention, Rehabilitation, and Compensation Amendment Act 2007 (2007 No 8).
                      • Section 170(4A): inserted, on , by section 8(2) of the Injury Prevention, Rehabilitation, and Compensation Amendment Act 2007 (2007 No 8).
                      • Section 170(4A): amended, on , by section 18(2) of the Accident Compensation Amendment Act 2010 (2010 No 1).
                      • Section 170(5): amended, on , by section 8(3) of the Injury Prevention, Rehabilitation, and Compensation Amendment Act 2007 (2007 No 8).
                      • Section 170(6): substituted, on , by section 8(4) of the Injury Prevention, Rehabilitation, and Compensation Amendment Act 2007 (2007 No 8).
                      • Section 170(8): amended, on , by section 8(5) of the Injury Prevention, Rehabilitation, and Compensation Amendment Act 2007 (2007 No 8).