Injury Prevention, Rehabilitation, and Compensation Amendment Act 2007

1: Title
This Act is the Injury Prevention, Rehabilitation, and Compensation Amendment Act 2007.
2: Commencement
This Act comes into force on 1 April 2007.
3: Principal Act amended
This Act amends the Injury Prevention, Rehabilitation, and Compensation Act 2001
1: Amendments to principal Act
4: New section 167 substituted
Section 167
167: Application and source of funds
1: The purpose of the Work Account is to finance entitlements provided under this Act by the Corporation to employees, private domestic workers, and self-employed persons for work-related personal injuries (other than entitlements funded from the Residual Claims Account).
2: The funds for the Work Account are to be derived from—
a: levies payable, under sections 168, 168A, 168B, and 211
b: payments made to the Corporation in respect of obligations taken on by the Corporation under section 7 of the Accident Insurance (Transitional Provisions) Act 2000
3: The funds in the Work Account must be applied to meet the costs of—
a: entitlements in respect of employees, private domestic workers, and self-employed persons for work-related personal injuries (other than entitlements funded from the Residual Claims Account); and
b: entitlements in respect of employees, private domestic workers, and self-employed persons for personal injury caused by work-related gradual process, disease, or infection if—
i: the employment task, or employment in the particular environment, giving rise to that personal injury was performed or occurred on or after 1 July 1999; and
ii: the claimant was an employee, a private domestic worker, or self-employed when performing that task or in that environment (regardless of whether the claimant was an employee, a private domestic worker, or self-employed at the date on which the personal injury is regarded as having been suffered); and
c: entitlements in respect of obligations, under accident insurance contracts of employers and private domestic workers, and for self-employed persons, taken on by the Corporation under section 7 of the Accident Insurance (Transitional Provisions) Act 2000
d: entitlements that are required to be provided in accordance with Part 11 Accident Insurance Act 1998
e: entitlements, in respect of employers, private domestic workers, and self-employed persons that, immediately before 1 April 2007, would have been funded from the Self-Employed Work Account or the Employers' Account; and
f: administering the Account; and
g: audits and assessments referred to in section 175
h: any other expenditure authorised by this Act.
5: New section 168B inserted
The following section is inserted after section 168A
168B: Self-employed persons to pay levies
1: A self-employed person must pay, in accordance with this Act and regulations made under it, levies to fund the Work Account.
2: A levy must relate to a prescribed period.
3: A self-employed person must pay the levy by the date specified for payment, whether in an invoice or other appropriate document given to the self-employed person by the Corporation or an agent of the Corporation, being a date not less than 2 months after the date of the invoice or other appropriate document.
6: New section 169 substituted
Section 169
169: Rates of levies
1: Levies are to be paid under sections 168, 168A, and 168B
a: the amount of earnings paid, estimated to be paid, or deemed by regulations to have been paid by an employer to the employer's employees for that period; or
b: the amount of earnings received for that period as a private domestic worker or deemed by regulations to have been received as a private domestic worker for that period; or
c: the level of earnings (other than earnings as an employee) derived, estimated to be derived, or deemed by regulations to be derived, by a self-employed person.
2: The extent of funds to be derived from levies under sections 168, 168A, and 168B
7: New section 169A inserted
The following section is inserted after section 169
169A: Limit 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—
a: any net loss of the person for an earlier tax year that might otherwise be offset by the person under section IE 1 of the Income Tax Act 2004
b: any part of the net loss of a loss attributing qualifying company (as defined in section OB 1 of the Income Tax Act 2004 section HG 16 of the Income Tax Act 2004
2: 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.
8: Classification of industries or risks
1: Section 170 subsection (1)
1: 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 for the purposes of setting levies payable under sections 168, 168B, and 211
2: Section 170 subsection (4)
4: Regulations made under this Act must prescribe a Work Account levy for each industry or risk class defined under subsection (1)
4A: The regulations referred to in subsection (4)
a: 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
b: 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
c: 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.
3: Section 170(5) or self-employed person employer
4: Section 170 subsection (6)
6: The Corporation must separately account for the amounts—
a: collected from each industry or risk class under sections 168, 168B, and 211
b: expended for the purposes of section 167(3)
5: Section 170(8) or self-employed persons employers
9: New section 171 substituted
Section 171
171: Classification of self-employed persons and employees engaged in 2 or more activities
1: A self-employed person or (if section 170(3)
2: If a particular activity accounts for 5% or less of a self-employed person's or an employee's earnings for the year, then that activity need not be considered when determining the correct industry or risk class under subsection (1)
3: Subsection (2)
10: New section 172A inserted
The following section is inserted after section 172
172A: Work 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.
11: New section 175 substituted
Section 175
175: Risk adjustment of Work Account levies
1: A Work Account levy determined for the purposes of sections 168, 168B, or 211
a: an audit of the employer's or the self-employed person's safety management practices; or
b: an assessment of the self-employed person's safety management capabilities (including, for example, practices and qualifications).
2: To avoid doubt, regulations may limit the application of subsection (1)
a: any 1 or more industries or risk classes:
b: particular types of employers or self-employed persons classified in the same industry or risk class.
3: A Work Account levy determined for the purposes of section 168
4: An audit of an employer's or a self-employed person's safety management practices must, and an assessment of a self-employed person's safety management capabilities may, be conducted in accordance with an audit tool or audit tools that—
a: are approved by the Minister; and
b: measure safety management practice or safety management capability, as the case may be, against independent New Zealand or foreign standards.
5: If any upward adjustment of levies under subsection (3) sections 178 to 180
6: Adjustments to levies may be reassessed on the basis of any new audits or assessments.
7: Regulations made for the purposes of subsection (1)(a) or (3) subsection (1)(b)
a: the level or levels of levy adjustment for different levels of compliance assessed by the audit tool or tools:
b: the basis and conditions on which, and periods for which, Work Account levies may be adjusted:
c: the frequency of, and circumstances under which, there may be additional audits or assessments of an employer's or a self-employed person's safety management practices or capabilities:
d: the order in which applications for audits or assessments are to be dealt with:
e: the approval of auditors by the Corporation.
8: Section 331
9: The Corporation must decide—
a: whether an adjustment to a Work Account levy is to be made; and
b: the level of any adjustment.
12: Medical Misadventure Account renamed
1: The Account known immediately before the commencement of this Act as the Medical Misadventure Account is, on the commencement of this Act, renamed the Treatment Injury Account.
2: Unless in any case the context otherwise requires, every reference to the Medical Misadventure Account in any enactment or document is, after the commencement of this Act, to be read as a reference to the Treatment Injury Account.
13: Consequential amendments
1: The principal Act is consequentially amended in the manner set out in Part 1
2: The Income Tax Act 2004 Part 2
2: Transitional provisions
14: Transfer of assets and liabilities to Work Account
All assets and liabilities of the Employers' Account and the Self-Employed Work Account (as they were immediately before the commencement of this Act) are, on the commencement of this Act, transferred to the Work Account.
15: Sections 330 and 331 do not apply to making of regulations for Work Account for 2007–08 tax year
Sections 330 331
16: Payment of levies payable before 1 April 2007
Amounts of levy that were, or become, payable to the Employers' Account and the Self-Employed Work Account (as they were immediately before the commencement of this Act) in respect of any period before 1 April 2007—
a: continue to be due and payable; and
b: must be paid into the Work Account.