Accident Compensation Act 1972

This commentary item was published in Public Information Bulletin Volume 77, February 1974

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Accident Compensation — Inland Revenue as Collecting Agent

Introduction

The Accident Compensation Act 1972 comes into force on 1 April 1974. The Act provides for three compensation schemes:—

• The Earner's Scheme for which funds are to be provided by a levy on employers and self-employed persons. Under this scheme compensation will be paid to all earners (employees and self-employed) who suffer an injury, whether or not the injury arises in the course of employment or business.
• The Motor Vehicle Accident Scheme for which funds are provided by an annual levy on all registered motor vehicles. Under this scheme compensation will be paid in respect of injury arising from a motor vehicle accident.
• The Supplementary Scheme will be financed from general taxation. Under this scheme compensation will be paid in respect of injury received by any persons not covered by either of the other two schemes.

The Inland Revenue Department As Collecting Agent

The Inland Revenue Department has been appointed collecting agent of the Accident Compensation Commission to collect the levies under the Earner's Scheme.

Payment Of Levies

Self-Employed:

• 30 April 1974 — pay a flat rate of $3 per month for the period 1 April 1974 to 30 September 1974 i.e. a total payment by 30 April of $18.
• 30 November 1974 — pay 1 percent of business income up to $10,400 for the period 1 October 1974 to 30 September 1975, on the basis of the income of the last financial year.

A leaflet "Guide to Self-Employed" and a levy statement will be sent to all self-employed persons. If you have not received a levy statement by 31 March 1974 get in touch with your local tax office. The leaflet gives information on the levy payable for the period 1 April 1974 to 30 September 1974.

Employers:

• 30 June 1974 — pay levy at the classified rate(s) for your industrial activity or activities on each employee's leviable earnings up to $10,400.

A booklet is available at any tax office on the classified rates of levy. A pamphlet, "Guide to Employers" and a levy statement will be sent to all employers later.

If you have not received an employer's levy statement by 31 May get in touch with your local tax office.

More Information Available

A copy of the working notes given to our staff is available on request from any tax office. These notes give more detailed information about the Accident Compensation levy.