ACC to collect Residual Claims Levies
Invoicing for ACC cover will be simplified for businesses when the corporation takes over the collection of Residual Claims levies from Inland Revenue next year.
Accident Insurance Minister Lianne Dalziel said the transfer of responsibility for collecting the levy would take effect from 1 April 2002.
The Residual Claims levy is charged to employers and self-employed to cover the cost of treating and rehabilitating people injured in the workplace before 30 June 1999, or non-work injuries prior to 1992. The levy was initiated in 1999 when ACC changed over from the pay-as-you-go system to the now fully funded system which collects to cover long term accident costs.
When ACC again became the sole provider of employer accident cover post privatisation two years ago, it started invoicing employers and self-employed for the first time. But Inland Revenue collected Residual Claims levy which was also charged to this group.
ACC and Inland Revenue agreed to the change earlier this year, the Minister said.
"It's simply more effective business invoicing from one source. It also means customers only have one organisation to deal with for all ACC services," Lianne Daziel said.
"ACC has been collecting most of its accident cover levies for two years now and the transfer is a logical step and the final phase of ACC managing all of its business. More importantly this is going to make things simpler for business owners - one bill from ACC - for your ACC cover," said Lianne Dalziel.
The shift will mean that employers and self-employed will no longer need to self-calculate their liable earnings and ACC levies amount when completing annual tax returns from next year onwards.
Inland Revenue will continue to provide ACC with relevant earnings information for customers. They will also continue to collect the existing employee earner levy through the PAYE system.
Juli Clausen (Press Secretary) 04 471 9099 or 021 70 70 45
Email: [email protected]