Accident Compensation Amendment Act 2010

1: Title
This Act is the Accident Compensation Amendment Act 2010.
2: Commencement
1: The following provisions come into force on 1 July 2010:
a: section 6(2)
b: section 8
c: section 9
d: sections 11 to 13
e: section 19
f: section 34
g: section 47(1) Part 1
h: sections 53 to 61
2: The rest of this Act comes into force on the day after the date on which this Act receives the Royal assent.
3: Principal Act amended
This Act amends the Act that was previously called the Injury Prevention, Rehabilitation, and Compensation Act 2001 2010-03-03 Injury Prevention, Rehabilitation, and Compensation Act 2001 Ss 4, 5, 6(1) and (3), 7, 10, 14–18, 20–33, 35–46, 47(2) 2010-07-01 Injury Prevention, Rehabilitation, and Compensation Act 2001 Sections 6(2), 8, 9, 11–13, 19, 34, 47(1) and Part 1 of Schedule 1
1: Amendments to principal Act
4: Title repealed
The Title is repealed.
5: Name of principal Act changed
1: On and from the commencement of this section,—
a: the principal Act is called the Accident Compensation Act 2001
b: every reference to the principal Act in any enactment, agreement, deed, instrument, application, notice, or other document must, unless the context otherwise requires, be read as a reference to the Accident Compensation Act 2001
2: Section 1 Injury Prevention, Rehabilitation, and Compensation Accident Compensation
3: Section 21A(4)(c) the Injury Prevention, Rehabilitation, and Compensation Act 2001 this Act
6: Interpretation
1: Section 6(1) Earners' Account Residual levy Motor Vehicle Account Residual levy Residual Claims Account Residual Claims levy
2: The definition of vocational independence section 6(1) 35 hours 30 hours
3: Section 6(1) moped motor cycle Motorcycle Safety levy section 214(3) .
7: Earnings as an employee: Work Account levy payable under section 168 and Residual Claims levy payable under section 193
1: The heading to section 12 and Residual Claims levy payable under section 193
2: Section 12 and the Residual Claims levy payable under section 193
8: Personal injury
Section 26
1A: Personal injury
1B: Personal injury
a: a personal injury other than a personal injury described in section 20(2); or
b: the ageing process; or
c: any other factors.
9: Personal injury caused by work-related gradual process, disease, or infection
1: Section 30(1A)
2: Section 30(2)(b)
ii: is not found to any material extent in the non-employment activities or environment of the person; and .
3: Section 30(2)
c: the risk of suffering the personal injury—
i: is significantly greater for persons who perform the employment task than for persons who do not perform it; or
ii: is significantly greater for persons who are employed in that type of environment than for persons who are not.
4: Section 30(2A)
10: Section 31 repealed
Section 31
11: Conduct of initial occupational assessment
Section 91(1A) must may
12: New section 119 inserted
The following section is inserted after section 118
119: Disentitlement for wilfully self-inflicted personal injuries and suicide
1: The Corporation must not provide any entitlements under Schedule 1 for any of the following:
a: a personal injury that a claimant wilfully inflicts on himself or herself, or, with intent to injure himself or herself, causes to be inflicted upon himself or herself:
b: the death of a claimant due to an injury inflicted in the circumstances described in paragraph (a)
c: the death of a claimant due to suicide.
2: However, subsection (1)
a: treatment; and
b: any ancillary service related to treatment referred to in clause 3(1) of Schedule 1.
3: Subsection (1)
a: mental injury suffered because of physical injuries suffered by the claimant for which he or she had cover; or
b: mental injury suffered by the claimant in the circumstances described in section 21 or 21B.
13: New sections 122 and 122A substituted
Section 122
122: Disentitlement for certain imprisoned offenders
1: The Corporation must not provide any entitlements under Schedule 1 to a claimant if—
a: the claimant suffers a personal injury in the course of committing an offence; and
b: the offence is punishable by a maximum term of imprisonment of 2 years or more; and
c: the claimant is sentenced to imprisonment or home detention for committing the offence; and
d: the Corporation would, but for this section, be liable to provide entitlements to the claimant for the personal injury.
2: In addition, the Corporation must not provide any entitlements under Schedule 1 to the following persons if the Corporation would, but for subsection (1)
a: the surviving spouse or partner of the deceased claimant:
b: any child of the deceased claimant:
c: any other dependant of the deceased claimant.
3: However, subsection (1)
a: treatment; and
b: any ancillary service related to treatment referred to in clause 3(1) of Schedule 1.
4: Despite subsection (3)
122A: Exemption from section 122(1)
1: The Minister may exempt a claimant from section 122(1)
2: Nothing in this section gives a claimant the right to apply for an exemption under subsection (1)
14: Separate Accounts
Section 166(1)(b)
15: New section 167 substituted
Section 167
167: Application and source of funds
1: The purpose of the Work Account is to—
a: finance entitlements provided under this Act by the Corporation to employees, private domestic workers, and self-employed persons for work-related personal injuries; and
b: finance the following entitlements that are required to be provided in respect of persons whose entitlements would have been provided from the Employers' Account under the Accident Rehabilitation and Compensation Insurance Act 1992:
i: entitlements for work injuries (as defined in the Accident Rehabilitation and Compensation Insurance Act 1992) suffered before 1 July 1999; and
ii: entitlements for non-work injuries to earners suffered before 1 July 1992.
2: The funds for the Work Account are to be derived from—
a: levies payable under sections 168, 168A, 168B, and 211 by employers, private domestic workers, and self-employed persons; and
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 in relation to the accident insurance contracts of employers and private domestic workers, and for self-employed persons; and
c: premiums continued by or payable under Part 11.
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; and
b: 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; and
c: entitlements that are required to be provided in accordance with Part 11 in respect of persons whose entitlements would have been provided from the Self-Employed Work Account under the Accident Insurance Act 1998; and
d: 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
e: entitlements that, immediately before the commencement of section 21 of the Accident Compensation Amendment Act 2010
f: administering the Account; and
g: audits and assessments referred to in section 175; and
h: any other expenditure authorised by this Act.
4: Regulations made under this Act may prescribe, in relation to a prescribed period, a portion of the levies payable under sections 168, 168A, 168B, and 211 to provide for or, to the extent that it is necessary, to provide separately for,—
a: the purposes of subsection (3)(a) to (d) and (f) to (h)
b: the purposes of subsection (3)(e), (f), and (h) section 169AA(1)(a)
5: Those regulations may also relate to the same or different prescribed periods.
16: Rates of levies
1: Section 169(1) for that period
2: Section 169
2: Regulations made under this Act may—
a: establish a system or systems for either or both of the following:
i: the experience rating of employers, private domestic workers, or self-employed persons:
ii: risk sharing between employers, private domestic workers, or self-employed persons, on the one hand, and the Corporation on the other; and
b: adjust the levies under sections 168, 168A, 168B, and 211 in relation to a particular employer, private domestic worker, or self-employed person on the basis of that system or those systems.
3: The systems referred to in subsection (2)
4: None of the following applies, or can be made to apply, to the portion of the levies payable under sections 168, 168A, 168B, and 211 that is necessary to achieve the purpose specified in section 169AA(1)(a)
a: any of the systems referred to in subsection (2)
b: section 175.
17: New section 169AA inserted
The following section is inserted after section 169
169AA: Basis on which funds to be calculated
1: The extent of funds to be derived from levies under sections 168, 168A, and 168B is to be calculated to achieve the following purposes:
a: the residual amount is to be completely paid off or funded no later than 31 March 2019:
b: the cost of all claims under the Work Account is fully funded.
2: The Minister may, by notice in the Gazette
3: The Minister's power under subsection (2)
4: In this section, residual amount
a: is specified by the Minister; and
b: represents, among other things, as at 30 June 2009, the sum of—
i: the estimated value of the outstanding claims liability for the Residual Claims Account (minus the value of any accrued assets); and
ii: the estimated value of the Corporation's potential liability (minus the value of any accrued assets) in respect of future claims for cover for personal injury caused by work-related gradual process, disease, or infection by persons who,—
A: before 1 July 1999, may have been exposed to a particular property or characteristic of their employment tasks or environment that causes, or contributes to the cause of, the personal injury; but
B: by 30 June 2009, have not suffered the personal injury.
18: Classification of industries or risks
1: Section 170
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 following purposes:
a: setting levies payable under sections 168, 168B, and 211:
b: setting those levies to include a portion that is necessary to achieve the purpose specified in section 169AA(1)(a)
2: Section 170(4A) that relate to an industry or risk class defined under subsection (1)(a) subsection (4)
19: Purchase of weekly compensation by shareholder-employees
1: Section 190(1)
a: omitting person with earnings as a shareholder-employee shareholder-employee
b: omitting the person the shareholder-employee
2: Section 190(2) person with earnings as a shareholder-employee shareholder-employee
20: Effect on Work Account levy
Section 191
2: However, subsection (1) does not affect the employer's obligation to pay the portion of the Work Account levy referred to in section 167(4)
21: Heading above section 192 and sections 192 to 200 repealed
The heading above section 192 sections 192 to 200
22: Earner levies for self-employed persons who purchase weekly compensation
Section 212 and the Earners' Account Residual levy required by section 219(2)
23: Application and source of funds
1: Section 213
1: The purpose of the Motor Vehicle Account is to—
a: finance entitlements provided under this Act in respect of motor vehicle injuries; and
b: finance the cost of programmes to improve the safety of moped and motor cycle riders from the levy referred to in subsection (2)(d)
2: Section 213(2)
d: the prescribed Motorcycle Safety levy; and .
3: Section 213(5)
ba: claims that would have been provided from the Motor Vehicle Account under the Accident Rehabilitation and Compensation Insurance Act 1992; and .
4: Section 213
6: To avoid doubt,—
a: subsection (1)(b)
b: section 263 (except section 263(3)(b)) applies to the programmes referred to in subsection (1)(b)
7: Regulations made under this Act may prescribe, in relation to a prescribed period, a portion of the levies (except the Motorcycle Safety levy) to provide for or, to the extent that it is necessary, to provide separately for,—
a: the purposes of subsection (5)(a), (b), (c), and (d):
b: the purposes of subsection (5)(ba) section 215(1)(a)
24: Rate of levies
Section 214
3: A registered owner of a motor vehicle that is a moped or motor cycle must pay, in accordance with this Act and regulations made under it, the prescribed Motorcycle Safety levy.
3A: Subsection (3)
25: New section 215 substituted
Section 215
215: Basis on which funds to be calculated
1: The extent of funds to be derived under section 213(2) is to be calculated to achieve the following purposes:
a: the residual amount is to be completely paid off or funded no later than 30 June 2019:
b: the cost of all claims under the Motor Vehicle Account is to be fully funded.
2: Subsection (1)
3: The Minister may, by notice in the Gazette
4: The Minister's power under subsection (3)
5: In this section, residual amount
a: is specified by the Minister; and
b: represents, among other things, as at 30 June 2009, the estimated value of the outstanding claims liability for the Motor Vehicle Account (minus the value of any accrued assets) in respect of the claims described in section 213(5)(ba)
26: Levy categories
Section 216
2: The regulations may also classify all or any of the following, or categories of the following, into classes that most accurately describe their risk rating and may impose levies at different rates in relation to those classes in accordance with the system of differential levies referred to in subsection (1):
a: motor vehicles:
b: registered owners of motor vehicles:
c: persons who hold trade licences under section 34(1) of the Transport (Vehicle and Driver Registration and Licensing) Act 1986.
3: Subsection (2)
27: Collection of levies
Section 217
3: The Motorcycle Safety levy is payable in the prescribed manner.
28: Application and source of funds
1: Section 218(3)(b)
2: Section 218(4)
ea: claims that would have been provided from the Earners' Account under the Accident Rehabilitation and Compensation Insurance Act 1992; and .
3: Section 218
5: Regulations made under this Act may prescribe, in relation to a prescribed period, a portion of the levies to provide for or, to the extent that it is necessary, to provide separately for,—
a: the purposes of subsection (4)(a) to (e), (f), and (g):
b: the purposes of subsection (4)(ea) section 220A(1)(a)
29: Earners to pay levies
Section 219(2)
30: Rate of levies
Section 220(2)
31: New section 220A inserted
The following section is inserted after section 220
220A: Basis on which funds to be calculated
1: The extent of funds to be derived from levies under section 219 is to be calculated to achieve the following purposes:
a: the residual amount is to be completely paid off or funded no later than 31 March 2019:
b: the cost of all claims under the Earners' Account is to be fully funded by levies.
2: The Minister may, by notice in the Gazette
3: The Minister's power under subsection (2)
4: In this section, residual amount
a: is specified by the Minister; and
b: represents, among other things, as at 30 June 2009, the estimated value of the outstanding claims liability for the Earners' Account (minus the value of any accrued assets) in respect of the claims described in section 218(4)(ea)
32: Collection of levies by deduction from employee earnings
Section 221(1) (including the Earners' Account Residual levy)
33: Payment of Earners' Account levy and Earners' Account Residual levy by self-employed persons
The heading to section 222 and Earners' Account Residual levy
34: Persons eligible to purchase weekly compensation
Section 223(3)(c)(i) permanent in
35: Mixed earnings as employee and self-employed person
Section 231(4) and (5)
36: Residual Claims levy and Work Account levy payable by employers on disposal or cessation of business or when ceasing to employ
1: The heading to section 232 Residual Claims levy and
2: Section 232(1) a Residual Claims levy or
3: Section 232
2: An employer must comply with subsection (3) by the 15th day of the second month after the month in which the employer disposes of or ceases carrying on the business or continues the business as a self-employed person without employing any other person.
37: New section 233 substituted
Section 233
233: Levies payable to Corporation by self-employed person who ceases to derive earnings as such
1: Every self-employed person who, during a tax year, ceases to derive earnings as a self-employed person must—
a: deliver to the Commissioner a statement of the person's earnings as a self-employed person for the tax year concerned, within the applicable time within which a return for that tax year is required to be furnished to the Commissioner under the Tax Administration Act 1994; and
b: pay to the Corporation, on or before the due date,—
i: the Work Account levy, at the rate prescribed, to the extent that it applied to the person's earnings as a self-employed person in that tax year; and
ii: the earner levy, at the rate prescribed, to the extent that it applied to the person's earnings as a self-employed person in that tax year.
2: The provisions of this section (other than subsection (1)(b)(ii) 329(1)(b)
38: Section 235 repealed
Section 235
39: Corporation to define risk classification and decide levy if activity not classified by regulations
Section 239(1) either, or both, of sections 170 (Work Account levies) and 195 (Residual Claims Account levies) section 170 (Work Account)
40: Information available to Corporation
Section 246
4A: The Corporation may also request the Commissioner to provide any of the following information:
a: whether an employer, self-employed person, private domestic worker, or shareholder-employee to whom section RD 3(2) to (4) of the Income Tax Act 2007 applies has a tax agent and, if so, the tax agent's name and contact details:
b: for an employer, self-employed person, private domestic worker, or shareholder-employee to whom section RD 3(2) to (4) of the Income Tax Act 2007 applies who is an individual, whether the individual is deceased and, if so,—
i: the individual's date of death; and
ii: the name and contact details of the administrator or executor of the individual's estate.
4B: In this section, tax agent
41: Section 265 substituted
Section 265
265: Ancillary powers of Corporation
1: In addition to services required to be provided under this Act, the Corporation may provide services under subsection (2) or (4)
a: that are outside the functions of the Corporation under section 262 (as long as the services are consistent with the purposes of this Act):
b: whether or not the services are provided to a person who would not otherwise have cover under this Act.
2: The Corporation may provide services on a commercial basis, but only if—
a: the service is provided by a Crown entity subsidiary of the Corporation; and
b: the provision of the service is a viable commercial proposition for the Crown entity subsidiary; and
c: the service being provided is one that is consistent with the role and functions of the Corporation under this Act; and
d: any decision to provide the service, and the provision of the service, is consistent with any relevant policy direction given by the Minister under section 103 of the Crown Entities Act 2004.
3: Subsection (2)
4: The Corporation may provide government services or payments funded by an appropriation by Parliament, other than on a commercial basis, but only if—
a: the service being provided is one that is consistent with the role and functions of the Corporation under this Act; and
b: any decision to provide the service, and the provision of the service, is consistent with any relevant policy direction given by the Minister under section 103 of the Crown Entities Act 2004.
5: All money received by the Corporation from an appropriation by Parliament for the purposes of subsection (4)
42: Management of Accounts
Section 274(3A)
43: New section 278A inserted
The following section is inserted after section 278
278A: Annual financial condition report
1: The Corporation must—
a: prepare an annual report on its financial condition as soon as practicable after the end of each financial year; and
b: provide the report to the Minister.
2: The purpose of the report is to—
a: provide advice in relation to the Corporation's operations, financial condition, and liabilities; and
b: discuss the implications of any material risks to the Corporation that have been identified in the report.
3: The report must—
a: be prepared in accordance with generally accepted practice within the insurance sector in New Zealand; and
b: contain the information required to achieve the purpose in subsection (2)
4: The Minister must—
a: provide a copy of the report to the Minister of Finance; and
b: after complying with paragraph (a)
44: Section 291 repealed
Section 291
45: Regulations relating to levies
1: Section 329(b)(ii) sections 169(1) and 193 section 169(1)
2: Section 329
ca: prescribing the terms and conditions of the system or systems of experience rating or of risk sharing referred to in section 169(2) .
3: Section 329(g) sections 170 and 195 section 170
4: Section 329(h) sections 170 and 195 section 170
5: Section 329
l: establishing a system for differential levies, for the purposes of the Motor Vehicle Account, for categories referred to in—
i: section 216(1); or
ii: section 216(2) .
6: Section 329
m: setting, in relation to a prescribed period, a portion of the Work Account, the Motor Vehicle Account, or the Earners' Account that is necessary to achieve,—
i: in the case of the Work Account, the purpose specified in section 169AA(1)(a)
ii: in the case of the Motor Vehicle Account, the purpose specified in section 215(1)(a)
iii: in the case of the Earners' Account, the purpose specified in section 220A(1)(a)
ma: prescribing the manner of payment of the Motorcycle Safety levy for the purposes of section 217(3) .
7: Section 329
2: Regulations made under subsection (1)(ca)
a: specify the types of claims to which the system or systems of experience rating or of risk sharing referred to in section 169(2)
b: make different provision for different classes of levy payers or in respect of different industries or levies.
46: Consultation requirements for regulations relating to classifications, risk rating, or treatment injury
Section 330 section 329(f) or (g) or (l) or (m) section 329(f) or (g) or (l)(i) or (ma)
47: Schedules 1 and 4 amended
1: Schedule 1 Part 1
2: Schedule 4 Part 2 of Schedule 1
2: Miscellaneous provisions
Validation
48: Validation of disclosure of information for assessment of levies
1: Every disclosure of the information specified in subsection (2) by the Commissioner of Inland Revenue to the Accident Compensation Corporation under section 85E
2: The information referred to in subsection (1) is as follows:
a: whether an employer, self-employed person, private domestic worker, or shareholder-employee to whom section RD 3(2) to (4)
b: for an employer, self-employed person, private domestic worker, or shareholder-employee to whom section RD 3(2) to (4)
i: the individual's date of death; and
ii: the name and contact details of the administrator or executor of the individual's estate.
3: In this section, tax agent section 3 Consequential amendments
49: Consequential amendments to other enactments
The enactments specified in Schedule 2 2010-03-03 Health and Safety in Employment Act 1992 Income Tax Act 2007 New Zealand Superannuation and Retirement Income Act 2001 Tax Administration Act 1994 Social Security (Temporary Additional Support) Regulations 2005 Transitional provisions for levies
50: Transfer of assets and liabilities to Work Account
All assets and liabilities of the Residual Claims Account as it was immediately before the commencement of this section are, on that commencement, transferred to the Work Account.
51: Sections 330 and 331 of principal Act do not apply to making of regulations for Earners' Account, Motor Vehicle Account, or Work Account
Sections 330 331
a: the Earners' Account or the Work Account for the 2010–11 tax year:
b: the Motor Vehicle Account (including the Motorcycle Safety levy) for the period that starts on 1 July 2010 and ends on 30 June 2011.
52: Levies continue to be payable
1: This section applies to the amounts of levy that were, or will become, payable to the Residual Claims Account, the Motor Vehicle Account, or the Earners' Account as they were immediately before the commencement of this section.
2: The amounts to which this section applies—
a: continue to be due and payable; and
b: must be paid,—
i: in the case of the Residual Claims levy, to the Work Account; and
ii: in the case of the Motor Vehicle Account Residual levy, to the Motor Vehicle Account; and
iii: in the case of the Earners' Account Residual levy, to the Earners' Account. Transitional provisions for other matters
53: Transitional provision for disentitlement for wilfully self-inflicted personal injuries and suicide
To avoid doubt, this Act applies to disentitle a claimant for a wilfully self-inflicted personal injury, death, or suicide described in section 119
54: Transitional provision for disentitlement for certain imprisoned offenders
1: To avoid doubt, this Act applies to disentitle a claimant who suffers a personal injury in the circumstances described in section 122
2: To avoid doubt, despite the amendment of section 122 section 13
55: Claims for personal injury including hearing loss that have been lodged but not decided
1: This section applies if, before the commencement of this section,—
a: a person has suffered a personal injury that includes any degree of hearing loss that is less than 6% of binaural hearing loss caused by a personal injury described in section 20(2)
b: he or she has lodged a claim with the Accident Compensation Corporation under section 48
c: the Corporation has not made a decision on the claim.
2: On or after the commencement of this section, the Corporation must make a decision on the claim in all respects as if section 8
56: Claims for work-related gradual process, disease, or infection that have been lodged but not decided
1: This section applies if, before the commencement of this section,—
a: a person has suffered a personal injury caused by a work-related gradual process, disease, or infection; and
b: he or she has lodged a claim with the Accident Compensation Corporation under section 48
c: the Corporation has not made a decision on the claim.
2: On or after the commencement of this section, the Corporation must make a decision on the claim in all respects as if section 9
57: Assessment of vocational independence
An assessment of a claimant's vocational independence that has been commenced, but not determined, before the commencement of this section must, on or after that commencement, be considered and determined in all respects as if sections 6(2) 11 47 clause 25
58: Calculations of weekly earnings for weekly compensation
To avoid doubt, sections 223(3)(c)(i) clauses 33 34 35 36 38 39 41 42
59: Calculations of weekly compensation for loss of potential earning capacity
1: This section applies to—
a: a claimant who is incapacitated before the commencement of this section, but who is not entitled to weekly compensation for loss of potential earning capacity immediately before that commencement:
b: a claimant who is incapacitated only on or after the commencement of this section.
2: To avoid doubt, clause 47
60: Special provision for claimant already entitled to receive weekly compensation for loss of potential earning capacity
1: This section applies to a claimant who is incapacitated before the commencement of this section and who is entitled to weekly compensation for loss of potential earning capacity immediately before that commencement.
2: The weekly compensation payable to the claimant is the amount of weekly compensation to which the claimant was entitled immediately before the commencement of this section.
3: However, if the calculation of weekly compensation for loss of potential earning capacity in respect of the claimant is, but for subsection (2) and section 59 clause 47(4)
61: Abatement of weekly compensation
To avoid doubt, clause 49 clause 51
62: Members of ministerial advisory panels not entitled to compensation
1: Nothing in this Act entitles a member of the ministerial advisory panel referred to in section 31 291
2: In this section, member section 31 291