ACC introduces new payment, interest rates

The Accident Compensation Corporation (ACC) has announced changes to its client payments and interest rates.

Effectice July 01, clients receiving weekly compensation for more than 26 weeks will see a 1.98% increase in payments. This means the new gross maximum rate of weekly compensation payable will be at $2,015.59 per week, and the mimimum will be $566.40 (equal to 80% of the adult minimum wage of $708.00 for a 40-hour week).

Clients receiving other grants and allowances will see a 1.48% increase in non-taxable entitlements (independence allowance and lump sums).

Meanwhile, funeral grants, survivor grants and weekly childcare payments will increase as follows:

• Funeral grants: $6,311.49;
• Survivor’s grants: $6,766.72 for a partner and $3,383.38 for each child under 18 and each other dependent;
• Weekly childcare payments: $143.89 for one child, $86.33 each for two children and $201.45 in total for three or more children.

Read more: ACC rolls out new subsidy scheme

Moreover, ACC is changing the interest rate on overdue weekly compensation payments to 4.21% per annum. Up until June 30, the interest rate will continue to be 4.245% per annum.

“A payment is considered overdue if we’ve taken more than one month to pay you after we’ve received the information we need to calculate and make it,” the state insurer said.

ACC noted the changes for weekly compensation are based on Labour Cost Index movements. For other grants and allowances, it uses the Consumer Price Index.