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Backdated ACC weekly compensation payments

Sometimes clients will wait a long period of time for ACC to decide their claim and will rely on MSD assistance during this period.

When the claim is later approved, ACC will backdate the weekly compensation to the original entitlement date and make a backdated ACC payment for that period.

When this happens MSD must review any specified benefit paid to a client for the same period. The backdated ACC payment is a dollar-for-dollar reduction against the specified benefit.

ACC will reimburse MSD for the amount of overpaid specified benefit out of the client's backdated ACC payment before it is paid to the client.

Effect on specified supplementary assistance

If the backdated ACC payment reduces the client's specified benefit to zero MSD must treat the client as a non-beneficiary and review their entitlement to specified supplementary assistance.

Any debt established as a result of this review is recovered directly from the client.

Example

Torben is granted backdated weekly compensation of $19,800 for the period 6 October 2025 to 8 March 2026.

For this period, Torben also received:

  • Jobseeker Support of $361.32 per week (totalling $7,949.04)
  • Accommodation Supplement of $60 per week (totalling $1,320)

Torben's Jobseeker Support is reduced to zero for the period 6 October 2025 to 8 March 2026. ACC reimburse MSD the full amount of overpaid Jobseeker Support out of Torben's backdated ACC payment.

Because Torben's Jobseeker Support is reduced to zero, MSD must review his Accommodation Supplement as a non-beneficiary.

Toben's Accommodation Supplement entitlement reduced to $4.00 per week for the period 6 October 2025 to 8 March 2026 and an overpayment of $1,232 is established. This is a debt that Torben is required to repay to MSD.

Legislation

Specified supplementary assistance that must be reviewed when a backdated ACC weekly compensation payment reduces the specified benefit to zero means any of the following:

Legislation