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Accident Compensation Act 2001

Management of the Scheme - General administration

250: Penalties and interest due to Corporation in respect of unpaid levies

You could also call this:

“Extra charges for late ACC payments”

If you don’t pay a levy (a type of payment) to the Accident Compensation Corporation (ACC) on time, you might have to pay extra money. Here’s what you need to know:

The ACC will give you at least 30 days to pay after they tell you about the levy. If you don’t pay by the due date, you’ll have to pay interest on the unpaid amount. The government decides how much interest you have to pay.

If you still haven’t paid after 210 days, you’ll have to pay an extra 10% of what you owe. This extra 10% charge will happen again every 180 days until you pay.

Before charging you this extra 10%, the ACC will send you a notice at least 15 days before. This notice will tell you how much you owe, how much extra you’ll have to pay, and when you’ll have to start paying it.

There’s a limit to how much extra you can be charged. You won’t have to pay more than three times the original amount you owed in interest and penalties.

These rules don’t apply to levies you pay to the Commissioner of Inland Revenue. Also, if you owed money under old ACC laws, these rules apply to those too.

Remember, you still have to pay the original levy as well as any extra charges. If you’re having trouble paying, it’s a good idea to contact the ACC to discuss your options.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM103117.

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249: Penalties due to Corporation in respect of overpayments, or

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Part 6 Management of the Scheme
General administration

250Penalties and interest due to Corporation in respect of unpaid levies

  1. This section applies if any levy payable under this Act or any former Act is unpaid on the day after the date on which payment is due.

  2. The due date for payment may not be less than 30 days after the date of the notice advising that the levy is payable.

  3. A person who owes such a levy to the Corporation is liable to pay to the Corporation interest assessed at the rate and applied by the method (if any) prescribed by regulations made under this Act, which is payable on—

  4. any unpaid levy; and
    1. any unpaid instalment payment in respect of any levy; and
      1. any unpaid interest that has been charged already.

        1. If the total amount referred to in subsection (3)(a) to (c) has not been paid within 210 days after the due date, the person is liable to pay to the Corporation a further penalty at the rate of 10% in respect of the total unpaid amount; and, every 180 days after that 210-day period, the person is liable to pay to the Corporation a further penalty at the rate of 10% in respect of the total amount that remains unpaid.

        2. The Corporation must give a person to whom subsection (4) applies at least 15 days' notice of—

        3. the total amount referred to in subsection (3)(a) to (c); and
          1. the rate of penalty; and
            1. the date on and from which the penalty is to be applied.

              1. A person to whom this section applies is not liable to pay interest and penalties under this section more than an amount equal to 3 times the amount of the unpaid levy or overdue instalment debt.

              2. This section does not apply to a levy payable to the Commissioner.

              3. The liability to pay the penalty and interest is in addition to a liability to pay the levy.

              4. This section does not limit section 217.

              5. References in this section to a levy under a former Act include a premium under a former Act.

              Notes
              • Section 250(1): amended, on , by section 13 of the Accident Compensation (Maternal Birth Injury and Other Matters) Amendment Act 2022 (2022 No 51).
              • Section 250(2): amended, on , by section 25(2) of the Injury Prevention, Rehabilitation, and Compensation Amendment Act 2008 (2008 No 46).
              • Section 250(4): amended, on , by section 25(3)(a) of the Injury Prevention, Rehabilitation, and Compensation Amendment Act 2008 (2008 No 46).
              • Section 250(4): amended, on , by section 25(3)(b) of the Injury Prevention, Rehabilitation, and Compensation Amendment Act 2008 (2008 No 46).
              • Section 250(4): amended, on , by section 25(3)(c) of the Injury Prevention, Rehabilitation, and Compensation Amendment Act 2008 (2008 No 46).