Contents
Types of income : Contents

Quick reference guide for the treatment of ACC payments

ACC Payment

Description of ACC payment

Effect on benefit

ACC weekly compensation

A payment made to compensate for the loss of earnings as a result of injury.

It is based on 80% of the weekly income before the injury occurred.

It may also be paid for sensitive claims.

Direct deduction from specified benefits.

Note special provisions apply for New Zealand Superannuation.

Weekly compensation payments started before 1 July 1999

A payment made to compensate for the loss of earnings as a result of injury.

It is based on 80% of the weekly income before the injury occurred.

If paid for a different reason to the benefit, it is charged as income.

If the benefit is paid for the same reason as the weekly compensation it is a direct deduction.

Weekly compensation for surviving spouses (can be received as a lump sum payment)

Weekly compensation as a result of the death of their partner.

May be paid as a converted lump sum or as weekly payments.

Direct deduction from specified benefits.

Lump sum payment for impairment

For an injury that occurred after 1 April 2002, these payments compensate for the permanent loss of function caused by an injury.

Not income and not a direct deduction.

Excluded as a cash asset for Accommodation Supplement or Residential Care Subsidy for the first 12 months.

Independence Allowance

Assessed weekly but paid quarterly in advance, it is a tax-free allowance paid to recognise ongoing disability for an injury that occurred before 1 April 2002.

Not income and not a direct deduction.

Excluded as a cash asset for Accommodation Supplement or Residential Care Subsidy for the first 12 months.

Survivor's grant

A one-off payment to the partner, children and other dependents of someone whose death was the result of an injury.

Capital payment and not income.

Payments for attendant care, home help and rehabilitation services

Payments made to purchase a service or to meet the cost of travel and accommodation for accessing rehabilitation services.

Disregard the amount used to purchase services or pay costs.

The balance (if any) is charged as income.

ACC childcare payments

ACC childcare payments are made to caregivers in recognition of loss of supervisory or personal care (or financial support to provide this care) provided by a deceased parent before their death due to personal injury covered by ACC.

ACC childcare payments are not:

  • treated as income for benefit purposes or
  • deducted from the rate of or eligible hours when assessing Childcare Assistance

For Orphans and Unsupported Childs Benefit, ACC childcare payments should be considered as "other income".

ACC child weekly compensation

ACC child weekly compensation payments are to compensate for income that would have been provided by a deceased parent.

ACC child weekly compensation payments are:

  • a direct deduction from the caregiver's specified benefits
  • not income or a cash asset for Extra help assistance and hardship assistance

New Zealand Superannuation payments depend on when weekly compensation and New Zealand Superannuation are granted, see:

The direct deduction of ACC weekly compensation applies to specified benefits only.

Specified benefit means one of the following:

Legislation

A claim for physical and/or mental injury suffered as a result of sexual abuse or sexual assault.