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Accident Compensation Act 2001
Management of the Scheme
Work Account
172A: Work Account levy not payable on earnings of self-employed person over specified maximum

Part 1:
Preliminary provisions

2Commencement 3Purpose 4Overview 5Act to bind the Crown 5ATransitional, savings, and related provisions 6Interpretation 7Acute treatment 8Cover 9Earnings as an employee: what it means 10Earnings as an employee: payments to spouse or partner 11Earnings as an employee: what it does not include 12Earnings as an employee: Work Account levy payable under section 168 13Earnings of private domestic workers 14Earnings as a self-employed person 15Earnings as a shareholder-employee 16New Zealand 17Ordinarily resident in New Zealand 18Spouse (and spouse in relation to deceased claimant)18APartner (and partner in relation to deceased claimant)

Part 2:
Cover

Part 3:
Code of ACC Claimants' Rights, and claims

Code of ACC Claimants' Rights

39Meaning of Corporation 40Purpose of Code 41Code applies generally 42Corporation to prepare draft Code in consultation with persons nominated by Minister 43Public consultation on draft Code after agreement by Minister 44Approval of Code by Minister 45Corporation's obligations in respect of Code 46Application of Legislation Act 2012 to Code 47Amendments to Code

Claims process

48Person to lodge claim for cover and entitlement 49Treatment provider lodging claim on behalf of person 50Responsibilities of Corporation after claim lodged 51When claim is lodged and received 52Manner of making claim 53Time for making claim 54Responsibility of Corporation to make reasonable decisions in timely manner 55Responsibilities of claimant to assist in establishment of cover and entitlements 56Steps Corporation takes to action claims for cover 57Steps Corporation takes to action complicated claims for cover 58Effect of failure to meet time limits

Decisions on cover and entitlements

59Decision on cover independent of acceptance of levy 60Decision on claim for Schedule 2 injury 61Decision on claim for noise-induced hearing loss caused by work-related gradual process 62Decision on claim for treatment injury 63Corporation must tell claimant about review rights 64Corporation must give notice of decisions 65Corporation may revise decisions 66Corporation must keep claims files

Part 4:
Entitlements and related matters

Entitlements

67Who is entitled to entitlements 68Corporation provides entitlements in accordance with this Act 69Entitlements provided under this Act 70Claimant's and Corporation's obligations in relation to rehabilitation 71Employer's obligations in relation to rehabilitation

Responsibilities of claimant

72Responsibilities of claimant who receives entitlement

Treatment

73Payment of treatment providers for acute treatment 74Limits on treatment providers in decisions on acute treatment

Individual rehabilitation plan

75Corporation to determine need for rehabilitation plan 76Provision of rehabilitation before and after individual rehabilitation plan agreed 77Assessment of needs and content of plan 78Individual rehabilitation plan must be updated 79Purpose of social rehabilitation 80Purpose of vocational rehabilitation

Social rehabilitation

81Corporation's liability to provide key aspects of social rehabilitation 82Corporation may provide other social rehabilitation 83Date of entitlement to social rehabilitation 84Assessment and reassessment of need for social rehabilitation

Vocational rehabilitation

85Corporation liable to provide vocational rehabilitation 86Matters to be considered in deciding whether to provide vocational rehabilitation 87Further matters to be considered in deciding whether to provide vocational rehabilitation 88Vocational rehabilitation may start or resume if circumstances change 89Assessment of claimant's vocational rehabilitation needs 90Occupational assessor 91Conduct of initial occupational assessment 92Report on initial occupational assessment 93Medical assessor 94Assessments when medical assessor unavailable 95Conduct of initial medical assessment 96Report on initial medical assessment

Employer's duty to pay first week compensation

97Employee's right to receive first week compensation 98Employer's duty to pay first week compensation 99First week compensation is salary or wages for certain purposes

Weekly compensation

100Entitlement to weekly compensation depends on claimant's incapacity for employment and vocational independence 101Procedures for determining incapacity for employment and vocational independence

Incapacity for employment

102Procedure in determining incapacity under section 103 or section 105 103Corporation to determine incapacity of claimant who, at time of personal injury, was earner, on unpaid parental leave, or recuperating organ donor 104Effect of determination under section 103 on entitlement to weekly compensation 105Corporation to determine incapacity of certain claimants who, at time of incapacity, had ceased to be in employment, were potential earners, or had purchased weekly compensation under section 223 106Effect of determination under section 105 on entitlement to weekly compensation

Vocational independence

107Corporation to determine vocational independence 108Assessment of claimant's vocational independence 109When claimant's vocational independence to be assessed 110Notice to claimant in relation to assessment of vocational independence 111How determination that claimant has vocational independence is to be regarded 112Claimant with vocational independence loses entitlement to weekly compensation 113Claimant who no longer has vocational independence regains entitlement to weekly compensation

Interest on late payments of weekly compensation

114Payment of interest when Corporation makes late payment of weekly compensation 114ACorporation must publish applicable interest rate and premium

Indexation of weekly compensation and related amounts

115Indexation of weekly compensation and related amounts

Indexation of other entitlements

116Indexation of lump sum compensation, funeral grant, survivor's grant, and child care payments

Powers of Corporation

117Corporation may suspend, cancel, or decline entitlements

Disentitlements

118Disentitlement because proceedings brought: personal injury caused by work-related gradual process, disease, or infection 119Disentitlement for wilfully self-inflicted personal injuries and suicide 120Disentitlement for conviction for murder 121Disentitlement during imprisonment 122Disentitlement for certain imprisoned offenders 122AExemption from section 122(1)

General provisions

123Entitlements inalienable 124Entitlements to be provided to claimant only 125Corporation to pay amount for child to caregiver or financially responsible person 126Corporation to pay amount to claimant's estate 127Payment of weekly compensation and lump sum compensation to claimant outside New Zealand 128Payment for rehabilitation to claimant outside New Zealand 129Payment for attendant care to claimant outside New Zealand 130Payment to claimant outside New Zealand may be in New Zealand dollars to New Zealand bank account 131Advances of compensation and grants 132Adjustment of payments for part periods

Part 5:
Dispute resolution

Preliminary provision

133Effect of review or appeal on decisions

Reviews

134Who may apply for review 135How to apply for review 135ATime frame for lodging review application where alternative dispute resolution conducted about same matter 136Corporation to acknowledge receipt of review application 137Corporation to engage and allocate reviewers 138Reviewer's duty to act independently and disclose previous involvement 139Corporation's duties to secure independence of reviewer 140Conduct of review: general principles 141Conduct of review: hearing to be held 142Persons entitled to be present and heard at hearing 143Record of hearing 144Review decisions: formalities 145Review decisions: substance 146Deemed review decisions 147Effect of review decisions 148Costs on review

Appeals

149Who may appeal against review decision 150District Court Rules and this Act apply to appeal 151Manner of bringing appeal 152Corporation to provide names of persons entitled to be heard 153Notice of hearing place and date 154Corporation's duty to make record available 155Hearing of appeal 156Evidence at appeal 157Appointment of assessor 158Involvement of assessor 159Court may make order as to persons who may be present 160Court may make order prohibiting publication 161Decisions on appeal

Further appeals

162Appeal to High Court on question of law 163Appeal to Court of Appeal on question of law 164Recovery of costs of appeals

Part 6:
Management of the Scheme

165Duty of Corporation

Financial management

166Separate Accounts 166APrinciples of financial responsibility in relation to Accounts 166BFunding policy statement 166CConsultation, publication, and amendment of funding policy statement

Work Account

167Application and source of funds 168Employers to pay levies 168APrivate domestic workers to pay levies 168BSelf-employed persons to pay levies 169Rates of levies 169AABasis on which funds to be calculated 169ALimit on offsets in case of earnings as self-employed person 170Classification of industries or risks 171Classification of self-employed persons and employees engaged in 2 or more activities 172Work Account levy not payable on earnings of employee over specified maximum 172AWork Account levy not payable on earnings of self-employed person over specified maximum 173Estimation of levy 174Employer to notify increase or decrease of relevant employee earnings 174ACorporation may develop and establish workplace incentive programmes 174BProcess to develop workplace incentive programme 174CMinister's approval of certain workplace incentive programmes 174DEstablishment of workplace incentive programmes 174EAmendments to workplace incentive programme 174FCorporation must report on effectiveness of workplace incentive programmes 175Risk adjustment of Work Account levies 176Incorporation by reference 177Copy of audit tool and material incorporated by reference to be available to public 178Criteria for upward adjustment of levies 179Process for Corporation to decide whether to require audit 180Effect of audit or refusal to allow audit

Accredited employers

181Interpretation 182Objectives of sections 181 to 189 183Framework to be established 184Accreditation agreements 185Accreditation requirements 186Corporation may be accredited employer 187Accredited employers to provide entitlements 188Monitoring and audit 189Reporting and information

Purchase of weekly compensation by shareholder-employees

190Purchase of weekly compensation by shareholder-employees 191Effect on Work Account levy

Residual Claims Account

192Application and source of funds 193Liability to pay Residual Claims levy 194Rate of levy 195Classification of industries or risk 196Classification of employees engaged in 2 or more activities 197Classification of self-employed persons engaged in 2 or more activities 198Residual Claims levy where 2 or more employers 199Promotion of employer involvement 200Residual Claims levy not payable on earnings over specified maximum

Self-Employed Work Account

201Application and source of funds 202Self-employed persons to pay levies 203Rate of levies 204Limit on offsets in case of earnings as self-employed person 205Classification of industries or risk 206Classification of self-employed persons engaged in 2 or more activities 206ARisk adjustment of Self-Employed Work Account levy 206BIncorporation by reference 206CCopy of material incorporated by reference to be available to public 207Self-employed Work Account levy not payable on earnings over specified maximum

Purchase of weekly compensation by self-employed persons

208Purchase of weekly compensation by self-employed persons 209Procedure for reaching agreement 210Effect of agreement 211Levies for self-employed persons who purchase weekly compensation 212Earner levies for self-employed persons who purchase weekly compensation

Motor Vehicle Account

213Application and source of funds 214Rate of levies 215Basis on which funds to be calculated 216Levy categories 217Collection of levies

Earners' Account

218Application and source of funds 219Earners to pay levies 220Rate of levies 220ABasis on which funds to be calculated 221Collection of levies by deduction from employee earnings 222Payment of Earners' Account levy by self-employed persons

Purchase of weekly compensation for periods outside employment

223Persons eligible to purchase weekly compensation 224Compensation for persons who purchase weekly compensation 225Levies for persons who purchase weekly compensation 226Resumption of employment by persons who purchased weekly compensation

Non-Earners' Account

227Application and source of funds

Treatment Injury Account

228Application and source of funds 229Levy categories and rates 230Collection of levies

General levy provisions

231Mixed earnings as employee and self-employed person 232Work Account levy payable by employers on disposal or cessation of business or when ceasing to employ 233Levies payable to Corporation by self-employed person who ceases to derive earnings as such 234Levies may be collected by instalments 235Collection of levies from self-employed and employers 236Challenges to levies 237Corporation may revise decisions 238Effect of review or appeal about levy 239Corporation to define risk classification and decide levy if activity not classified by regulations 240Determinations 241Statements 242Failure to provide statement 243Power to assess levies 244Amounts of levy exempt from payment 245Agent to whom levies may be paid 246Information available to Corporation 247Change of balance date

General administration

248Recovery of debts by Corporation 249Penalties due to Corporation in respect of overpayments 250Penalties and interest due to Corporation in respect of unpaid levies

Recovery of payments

251Recovery of payments

Relationship with social security benefits

252Relationship with social security benefits: reimbursement by Corporation 253Relationship with social security benefits: reimbursement to Corporation

Limitation period and other matters

254Limitation period 255Refunds payable by Corporation 256Application of payments 257Application of sections 248, 249, and 254 to third parties 258Production of documents

Part 7:
Accident Compensation Corporation

The Corporation

259Accident Compensation Corporation 260Powers of Corporation 261Relationship between Corporation and subsidiaries 262Functions of Corporation 263Prevention of personal injury 264Money expended or received for injury prevention to be managed through Accounts 264AWorkplace injury prevention action plan 264BInjury prevention measures undertaken by WorkSafe and funded by Corporation or jointly undertaken 265Ancillary powers of Corporation 266Provisions relating to Crown entity subsidiaries 267Board of Corporation 268Protection of names Accident Compensation Corporation and Accident Rehabilitation and Compensation Insurance Corporation

Provisions relating to accountability of Corporation

269Further provisions applying to Corporation 270Corporation to comply with Government policy 271Service agreements between Corporation and Minister 272Statement of intent 273Provision of financial information 274Management of Accounts 275Investments 276Power to borrow, etc 277Loans and grants to Corporation

Reporting requirements

278Annual financial statements 278AAnnual financial condition report 278BCorporation to report in each financial year on access to accident compensation scheme by Māori and identified population groups

Information collection

279Purposes for which Corporation to collect information

Disclosure of information

280Disclosure of information to Corporation 281Disclosure of information by Corporation for benefit and benefit debt recovery purposes 282Disclosure of information by Corporation for health purposes 283Disclosure of information by Corporation for injury prevention purposes 284Reporting of risk of harm to public 285Personal injuries in nature of medical misadventure

Information about work-related injuries

286Corporation to provide information to Ministry of Business, Innovation, and Employment and to health and safety regulators

Part 8:
Management of injury-related information

287Purpose of this Part 288Injury-related statistics are official statistics under Data and Statistics Act 2022 289Information manager 290Information manager can require government agencies to provide injury-related information 291Ministerial advisory panel

Purchase agreements

292Minister to require information manager to enter into purchase agreement 293Funding of information manager

Part 9:
Miscellaneous provisions

Situations where previous insurer involved

294Scope and purpose of sections 295 to 297 295Obligation to provide entitlements where subsequent injury occurs 296Failure to reach agreement 297Entitlements not affected by court direction 298Work-related gradual process, disease, or infection involving exposure before 1 April 2002

Effect of Act and public interest

299No contracting out of this Act 300Public interest

Public health acute services

301Service agreement for purchase of public health acute services and other health services 302Minister of Health's responsibilities for purchase of public health acute services and other health services 303Restriction on purchase by Corporation of public health acute services 304Minister of Health acts on behalf of the Crown

Joint purchasing arrangements

305Joint purchasing arrangements for emergency transport services

Special leave for non-work injuries

306Sick leave may be used when employer not liable for first week compensation

General notification provision

307How documents given or information notified

Offences and penalties generally

308Offence to mislead Corporation 309Offence not to provide requested information to Corporation 310Offence not to provide earnings information to Corporation 311Goods and services tax not payable on penalties or fines

Liability of directors, employees, and officers

312Directors, employees, and officers

Informations

313Charges

Summary conviction

314Summary conviction

General fine

315General fine for offences

Offences relating to earner levies

316Offences in relation to deductions

Proceedings

317Proceedings for personal injury 318Proceedings for personal injury caused by work-related gradual process, disease, or infection 319Exemplary damages 320Corporation to be heard 321Powers of Corporation when person has right to bring proceedings

Regulation-making powers

Repeal of and amendments to provisions relating to residual levies

336ARepeal of and amendments to provisions relating to residual levies for Work Account 336BRepeal of and amendments to provisions relating to residual levies for Motor Vehicle Account 336CRepeal of and amendments to provisions relating to residual levies for Earners’ Account

Consequential amendments, repeals, and revocations

337Consequential amendments 338Consequential tax amendments 339Consequential repeals and revocations

Part 10:
Provisions relating to transition from competitive provision of workplace accident insurance

340Purpose of this Part 341Interpretation

Savings in respect of accident insurance contracts and injuries to which contracts apply

342Savings in respect of accident insurance contracts and injuries to which contracts apply under 1998 Act

Savings in respect of other ongoing matters under 1998 Act

343Saving in respect of other ongoing matters under 1998 Act 344Funding of Regulator 345Regulator's functions in respect of Non-Compliers Fund 346Amendments to 1998 Act 347Saving in respect of 2000 Act

Savings in respect of public health acute services

348Savings in respect of Accident Insurance (Payment for Public Health Acute Services) Regulations 2001

Regulations

349Regulations

Part 11:
Transitional provisions relating to entitlements provided by Corporation (but not under Part 10)

Interpretation

350Interpretation 351References to former Acts

Purpose of this Part

352Purpose of this Part

Application of this Part

353Part not to apply to certain claims

Cover for personal injury suffered before 1 April 2002

354Processing of claims 355Claims for cover accepted under former Acts 356Claim for cover lodged but not yet determined if injury suffered before 1 July 1992 357Claim for cover lodged before 1 July 1999 but not yet determined if injury suffered on or after 1 July 1992 but before 1 July 1999 358Claim for cover lodged on or after 1 July 1999 but not yet determined if injury suffered on or after 1 July 1992 but before 1 April 2002 359Injuries suffered before 1 April 1974 360Claim for cover under former Acts not lodged until on or after 1 April 2002 361Exclusion of cover for personal injury caused by work-related gradual process, disease, or infection if events before 1 April 1974 and death before 1 July 1992

First week compensation for incapacity commencing before 1 April 2002

362First week compensation for incapacity commencing before 1 April 2002

Entitlements for personal injury suffered before 1 April 2002

363Application of sections 364 to 387

Treatment

364Treatment

Weekly compensation

365Weekly compensation under Accident Insurance Act 1998 366Weekly earnings of certain claimants increased 367Multiple employment 368Weekly payments for permanent incapacity under 1972 and 1982 Acts 369Cessation of weekly compensation under any former Act because of capacity for work 370Cessation of weekly compensation under any former Act because of national superannuation qualification age 371Interest on late payments of weekly compensation

Rehabilitation

372Individual rehabilitation plan 373Time limit on vocational rehabilitation 374Compensation for pecuniary loss not related to earnings under 1972 and 1982 Acts: attendant care and household help 375Compensation payable outside New Zealand for pecuniary loss not related to earnings under 1982 Act: attendant care 376Compensation for pecuniary loss not related to earnings under 1972 and 1982 Acts

Independence allowance

377Independence allowance for personal injury suffered before 1 July 1999 378Personal injury suffered on or after 1 July 1999 and before 1 April 2002 379Payment of independence allowance to claimant outside New Zealand

Lump sum compensation under former Acts

380Lump sum compensation under former Acts

Entitlements arising from fatal injuries

381Funeral expenses for death before 1 April 2002 382Survivor's grant to surviving spouses or partners, children, and other dependants for death before 1 April 2002 383Compensation payable to surviving spouses or partners, children, and other dependants under Accident Insurance Act 1998 384Compensation payable to surviving spouses or de facto partners under 1972 and 1982 Acts 385Compensation payable to children and other dependants under 1972 and 1982 Acts 386Child care payments for children of deceased persons 387Compensation for pecuniary loss not related to earnings under former Acts: child care for child of deceased person 388Indexation of certain entitlements payable under former Acts

Disentitlements

389Disentitling sections apply

Revision of decisions under former Acts

390Corporation may revise decisions

Review and appeals

391Review and appeal proceedings for decisions under former Acts

Financial provisions

392Allocation of existing funds 393Levies, premiums, and other payments under former Acts

Accredited employers

394Accredited employers under Accident Rehabilitation and Compensation Insurance Act 1992 395Accredited employers under Accident Insurance Act 1998

Regulations

396Regulations providing for transitional matters 397Expiry of section 396

Relationship of HSE levy and reserves portion

398Collection of HSE levy

Transitional provisions relating to Corporation

399Corporation in lead-up to commencement of this Act 400Transfer of rights and liabilities under former Acts

Savings provision relating to references to premiums

401References to premiums under former Act include levies under this Act

Disestablishment of Accident Compensation Appeal Authority

402Disestablishment of Accident Compensation Appeal Authority

Schedule 1AA:
Transitional, savings, and related provisions

Schedule 1:
Entitlements

Schedule 2:
Occupational diseases

Schedule 3:
Cover for mental injury caused by certain acts dealt with in Crimes Act 1961

Schedule 3A:
Maternal birth injuries

Schedule 4:
Deductions on account of earner levies

Schedule 5:
Provisions relating to Corporation

Schedule 6:
Consequential amendments

Schedule 7:
Consequential tax amendments

Schedule 8:
Orders and regulations revoked

Accident Compensation Act 2001

Management of the Scheme - Work Account

172A: Work Account levy not payable on earnings of self-employed person over specified maximum

You could also call this:

"Self-employed people don't pay extra levy on money earned above a set limit"

If you are self-employed, you don't have to pay a Work Account levy on any money you earn above a certain amount. This amount is called the 'specified maximum'. The law says that you only need to pay the levy on your earnings up to this maximum amount. Any money you make over this amount is not subject to the Work Account levy.

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This page was last updated on 8 April 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM102411.

Topics:

Work and jobs > Workplace safetyMoney and consumer rights > Taxes

172: Work Account levy not payable on earnings of employee over specified maximum, or

"No Work Account levy on wages above a set limit"

173: Estimation of levy, or

"The government guesses how much you might owe for workplace accidents"

Part 6Management of the Scheme
Work Account

172AWork Account levy not payable on earnings of self-employed person over specified maximum

Nothing in this Act requires a self-employed person to pay a Work Account levy on earnings that exceed the specified maximum.

Notes

Section 172A: inserted, on 1 April 2007, by section 10 of the Injury Prevention, Rehabilitation, and Compensation Amendment Act 2007 (2007 No 8).