ACC updates client payment rates

The Accident Compensation Corporation (ACC) has updated its payment rates, effective July 1, following the completion of its annual review process.

During the review, ACC looks at two indices and the minimum wage that inform it whether it needs to make changes to client payments.

Based on movements in the Labour Cost Index this year, ACC will increase payments by 3% for clients who have been receiving weekly compensation for more than 26 weeks.

As a result, the new gross maximum rate of weekly compensation payable will be $2,163.70 per week. Meanwhile, the new gross minimum rate of weekly compensation payable to a full-time earner will be $678.40, or equal to 80% of the adult minimum wage of $848 for a 40-hour working week.

For clients receiving other grants and allowances, non-taxable entitlements, such as independence allowance and lump sums, will increase by 6.93%, based on movements in the Consumer Price Index.

ACC listed several new payment rates as follows:

• Funeral grants will be $7,024.80
• Survivor’s grants will be $7,531.49 for a partner and $3765.76 for each child under 18 and each other dependent
• Weekly childcare payments will be $160.15 for one child, $96.09 each for two children and $224.22 in total for three or more children

For overdue weekly compensation payments, ACC will hike the interest rate to 2.477% per annum from 1.795% per annum. A payment is considered overdue if ACC takes more than one month to pay a client after it has received the necessary information needed to calculate and make it. The legislation relating to overdue weekly compensation payments and interest rates is set out in section 114 of the Accident Compensation Act 2001.