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Safeguard OSH Solutions - Thomson Reuters

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Explanatory note

Explanatory note
This note is not part of the regulations, but is intended to indicate their general effect.
These regulations, which come into force on 1 April 2017, prescribe the levies payable to fund the Work Account for the period comprising—
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the tax year commencing on 1 April 2017 and ending with the close of 31 March 2018; and
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the tax year commencing on 1 April 2018 and ending with the close of 31 March 2019; and
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any tax year commencing on or after 1 April 2019.
In the past, the rates of levies and classification of industries or risks used to be reviewed and set every year. These regulations discontinue that annual cycle and begin a biennial cycle of reviewing and setting rates of levies and classification of industries or risks that would apply for 2 years.
These regulations revoke and replace the Accident Compensation (Work Account Levies) Regulations 2016 (the 2016 regulations).
The other main changes from the 2016 regulations are as follows:
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the maximum amount of earnings on which the Work Account levy is payable by an employer in respect of any 1 employee, or by a private domestic worker has increased from $122,063 to $124,053 in the 2017/18 tax year, and to $126,286 in the 2018/19 tax year:
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the maximum amount of self-employed earnings on which a Work Account levy or compensation levy is payable by a self-employed person has increased from $120,070 to $122,063 in the 2017/18 tax year, and to $124,053 in the 2018/19 tax year or for any tax year commencing on or after 1 April 2019:
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the specified amount of earnings for a self-employed person who earns less than the stated amount or who does not have an earnings history for the purposes of regulation 7(1)(b) has increased from $30,680 to $31,720, and for the purposes of regulation 7(2)(b) has increased from $30,680 to $32,760:
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Part 4 of the 2016 regulations (which related to downward adjustments to Work Account levy or compensation levy based on safety management practices) is not carried forward in these regulations. This change follows the amendments made to the Accident Compensation Act 2001 (the Act) by the Accident Compensation Amendment Act 2015 (the Amendment Act). The Amendment Act repeals section 175(1) and (2) of the Act (relating to downward adjustment of levies to be set by regulations) with effect on and from 1 April 2017. The Amendment Act also inserted new sections 174A to 174F in the Act, which set out a process for downward adjustments based on workplace incentive programmes developed by ACC and published by notice in the Gazette.
Regulatory impact statement
The Ministry of Business, Innovation, and Employment produced a regulatory impact statement on 28 November 2016 to help inform the decisions taken by the Government relating to the contents of this instrument.
PROMULGATION
Issued under the authority of the Legislation Act 2012.
Date of notification in Gazette: 23 February 2017.
These regulations are administered by the Ministry of Business, Innovation, and Employment.

From OSH Legislation

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