Section 170 — Injury Prevention, Rehabilitation, and Compensation Act 2001: Classification of industries or risks

170 Classification of industries or risks (1) The Corporation must classify an employer and a self-employed person in an industry or risk class that most accurately describes their activity, being an industry or risk class set out in regulations made under this Act for the purposes of setting levies payable under sections 168 , 168B , and 211 . (2) If an employer is engaged in 2 or more activities, the Corporation must classify all the employer's employees in the classification unit for whichever of those activities attracts the highest levy rate under the regulations. (3) Despite subsection (2) , the Corporation may classify the employer's employees in separate classification units for different activities if the employer meets the threshold (if any) specified in regulations and if— (a) the employer so requests; and (b) the employer is engaged in 2 or more distinct and independent activities; and (c) each of those activities provides services or products to external customers in such a way that each activity could, without adaptation, continue on its own without the other activities; and (d) accounting records are maintained by the employer to the satisfaction of the Corporation that— (i) demonstrate the separate management and operation of each activity; and (ii) allocate to each activity the earnings of employees engaged solely in that activity. (4) Regulations made under this Act must prescribe a Work Account levy for each industry or risk class defined under subsection (1) . (4A) The regulations referred to in subsection (4) — (a) may, until the end of the 2009–10 tax year, prescribe the levies at different rates for employers and self-employed persons classified in the same industry or risk class; and (b) must, until the end of the 2009–10 tax year, prescribe the levies at a rate that does not increase or decrease the levy rate payable by employers or self-employed persons in a particular industry or particular risk class by more than 25% of the rate payable in the previous tax year; and (c) must, after the end of the 2009–10 tax year, prescribe the levies at the same rate for employers and self-employed persons classified in the same industry or risk class. (5) The Corporation must decide which industry or risk class is appropriate in relation to any employer or self-employed person by whom a levy is payable, and section 239 applies if the classes defined by the regulations do not specifically cover a particular activity. (6) The Corporation must separately account for the amounts— (a) collected from each industry or risk class under sections 168 , 168B , and 211 ; and (b) expended for the purposes of section 167(3) in respect of each industry or risk class. (7) If costs relating to a particular claim are attributable to more than 1 industry or risk class, the Corporation must apportion those costs in a way that reasonably represents the relative costs to each of those industry or risk classes. (8) Nothing in this section prevents the Corporation from making arrangements to enable employers or self-employed persons to carry out self-assessments for the purposes of this section. Compare: 1998 No 114 s 281D; SR 2000/54 r 6 Subsection (1) was substituted, as from 1 April 2007, by section 8(1) Injury Prevention, Rehabilitation, and Compensation Amendment Act 2007 (2007 No 8). See sections 14 to 16 of that Act for the transitional provisions. Subsection (3) was amended, as from 22 October 2003, by section 4 Injury Prevention, Rehabilitation, and Compensation Amendment Act (No 2) 2003 (2003 No 80) by inserting “ (if any) ” after “ threshold ” . Subsection (4) was substituted, as from 1 April 2007, by section 8(2) Injury Prevention, Rehabilitation, and Compensation Amendment Act 2007 (2007 No 8). See sections 14 to 16 of that Act for the transitional provisions. Subsection (4A) was inserted, as from 1 April 2007, by section 8(2) Injury Prevention, Rehabilitation, and Compensation Amendment Act 2007 (2007 No 8). See sections 14 to 16 of that Act for the transitional provisions. Subsection (5) was amended, as from 1 April 2007, by section 8(3) Injury Prevention, Rehabilitation, and Compensation Amendment Act 2007 (2007 No 8) by inserting “ or self-employed person ” after “ employer ” . See sections 14 to 16 of that Act for the transitional provisions. Subsection (6) was substituted, as from 1 April 2007, by section 8(4) Injury Prevention, Rehabilitation, and Compensation Amendment Act 2007 (2007 No 8). See sections 14 to 16 of that Act for the transitional provisions. Subsection (8) was amended, as from 1 April 2007, by section 8(5) Injury Prevention, Rehabilitation, and Compensation Amendment Act 2007 (2007 No 8) by inserting “ or self-employed persons ” after “ employers ” . See sections 14 to 16 of that Act for the transitional provisions.