Direction to the Accident Compensation Corporation relating to Government policy on Competitive Neutrality in the Self-Employed Work Account established under the Accident Insurance Act 1998 ("AI Act").
To the Accident Compensation Corporation ("ACC")
Background
1. Section 301 (2) of the AI Act requires that the extent of funds from premiums are calculated on the basis of:
(a) full funded costs; and
(b) a competitive neutrality portion.
2. The purpose of this direction is to set the method for calculating the competitive neutrality amount to be added to Self-Employed Work Account premiums from 1 July 2000.
3. Section 299 (4) requires that any amount collected for competitive neutrality is to be paid to the Crown on an annual basis. Section 301 (3) of the AI Act states that no amount for competitive neutrality may be collected in respect of the period before 1 July 2000.
Policy Direction
4. Pursuant to sections 301 (2) (b) and 339 of the AI Act, the competitive neutrality portion shall be a "Nil" amount.
5. This direction continues in force until revoked.
Dated at Wellington this 13th day of December 1999.
DR MICHAEL CULLEN, Minister for Accident Insurance.