Clients, care givers urged to act on tax changes

News media release
For immediate release
17 June 2008

ACC urges injured clients and care givers to act on tax changes

ACC is urging injured clients and their care givers to act now to send their tax details to ACC by 1 July to avoid paying more tax than they need to on their care giver income.

Inland Revenue numbers and tax status details are needed by ACC to ensure it can deduct the right amount of schedular payments (formerly known as withholding tax) from payments for care services. Schedular payments will apply to home help, child care and attendant care services provided by care givers.

ACC either makes payment direct to care givers who provide care services to injured clients, or through injured clients who then pay their care givers for services.

“If our injured clients and their care givers don’t get their information to us by 1 July, the schedular payment rate rises from 15% to a non-declaration rate of 30%. So to avoid paying at the higher rate, I strongly urge people to get the information in on the forms ACC has sent them,” said ACC Chief Operating Officer, Gerard McGreevy. “In the majority of cases, once the information is received, the rate will fall to 15%.

The Government introduced schedular payments for care givers so that they can pay tax in regular amounts rather than face a larger tax bill at the end of the year.

ACC and Inland Revenue have run an intensive campaign over the last three months to inform care givers and injured clients about their tax obligations relating to payments for ACC-funded attendant care services. The campaign has included repeated mail outs, phone contact with care givers and injured clients, and information seminars.

“However, so far only 15% of people we have contacted have sent us their details. If people need help on what to do they should call ACC on 0800 222 070. People can also find information on our websites – www.acc.co.nz or www.ird.govt.nz – or attend one of the seminars noted in our last mail out. Our injured clients can also call their ACC contact for personal service,” Mr McGreevy added.

ENDS

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