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Accident Compensation (Interest on Instalment Plans) Amendment Bill

In short — Arapono’s summary

ACC (the government body that handles injury compensation) charges employers extra interest when they pay their levies (fees) in instalments rather than all at once. This bill makes that interest charging officially legal — including backdating it to cover the past, since ACC was doing it without a clear law allowing it. It also sets up rules so the government can formally decide the interest rate by regulation in future, and requires ACC to consult employers before recommending a rate.

What this affects

Tap a topic to see how this bill touches it — with the parts of the text it’s based on.

Employers who pay their ACC levies in instalments over 10 months will continue to be charged 2.73% interest, now with a clear legal backing, and future interest rates will be set by government regulations after consultation with employers.

From the bill

The Corporation may charge interest as prescribed by regulations on any levy collected by instalments.

2.73% on the total amount of levy collected over a 10-month instalment period

The Corporation must consult levy payers on the proposed rate of interest payable on a levy collected by instalments... before recommending to the Minister that regulations be made

Where parties stand on Economy

Progress through Parliament

Introduced
First Reading● Current stage
Select Committee
Second Reading
Committee of the whole House
Third Reading
Royal Assent

Have your say

Submissions open once a bill reaches the select committee stage. In the meantime, you can write to your local MP about it.

Write to your MP
View the official bill on legislation.govt.nz

Bill text sourced from legislation.govt.nz (Parliamentary Counsel Office). Arapono’s summary and breakdown are drafted with AI grounded in that official text and reviewed by an Arapono editor for accuracy and neutrality before publishing. Arapono is non-partisan and takes no position on this bill.