The Accident Compensation Self-Employed Levy Payment Regulations 1979

This commentary item was published in Public Information Bulletin Volume 101, October 1979

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The Accident Compensation Self-Employed Levy Payment Regulations 1979 were recently gazetted and came into force on 1 October 1979. These Regulations abolish start-up levies and cessation adjustments in respect of self-employed earnings from that date. In all other respects the self-employed scheme is unchanged.

In essence, there will now be an annual self-employed levy payment based on leviable earnings derived by a self-employed person during that financial year (year to balance date) which corresponds to their income year for tax purposes. In other words, the annual levy payment will be based on the actual leviable earnings shown in their tax return for the same year.

Effect of New Regulations

• The old legislation will continue to operate up to 30 September 1979. This means that:
  • Any person who commences to be self-employed prior to 1 October 1979 will still be required to pay the start-up levy of $3 per month.
  • Cessation adjustments will continue to be made in respect of any person who ceases to be self-employed before 1 October 1979.
• From 1 October 1979:
  • No start-up levy will be payable. Under the new Regulations any person who commences to be self-employed on or after 1 October 1979 will not be required to pay any Accident Compensation levy until the due date for terminal tax in respect of the first tax return furnished which includes income from self-employment.
  • No cessation adjustments will be made where a person ceases to be self-employed on or after 1 October 1979.

General

• Where a person is self-employed for less than 12 months in any year, the self-employed Accident Compensation levy will be the greater of 1.07 percent of -
  • the leviable earnings, or
  • the prescribed amount. The prescribed amount will be determined under existing rules, i.e., $3,600 where the time self-employed during the 12 month period averages 30 or more hours per week, otherwise $1,000.
• The new maximum combined leviable earnings as from 1 October 1979 are $19,864.