New Zealand’s Accident Compensation Corporation (ACC) has introduced regulatory changes and entitlement updates covering occupational disease, dispute costs, hearing loss assessment, and client travel support, as well as inflation-linked payment increases.
Four sets of regulations were updated on Nov. 27, with ACC saying the changes are intended to ensure the no-fault scheme reflects current medical evidence, inflation, and the costs faced by clients. One of the key changes is the addition of 12 conditions to Schedule 2 of the Accident Compensation Act, which lists occupational diseases that can be linked to workplace exposures for the purposes of cover. Schedule 2 had not been updated since 2008. The new entries are intended to reflect changes in work patterns and emerging evidence on occupational risks. ACC says the changes are intended to alter how access to cover is determined where causation is supported by epidemiological data.
ACC has also changed the Review Costs Regulations, which govern the reimbursement of expenses for clients who challenge ACC decisions. The structure has shifted from 14 cost categories to three, and reimbursement caps for items such as legal representation and medical evidence have been increased. For advisers and representatives, this change may affect how review files are costed and whether particular matters are commercially viable to pursue.
ACC head of policy, evidence, and insights Brian Hesketh said some regulatory settings had fallen behind economic and scientific developments. He added: “Changes such as the increase in our travel and accommodation rates will make it easier for kiritaki to access ACC cover and receive the right support at the right time, as they recover from injury.”
For gradual-process hearing loss claims, ACC has revised the Hearing Assessment Regulations used to determine cover for work-related impairment. Central to this is the age scale that separates age-related hearing decline from loss that may be attributable to noise or other occupational exposures. The updated scale is now aligned with the current international standard. ACC has also updated technical testing parameters, including requirements for pure-tone air and bone conduction audiometry.
For occupational health advisers, audiologists, and insurers writing complementary covers, these changes may influence how liability is apportioned between age-related and work-related causes, and may alter the profile of accepted claims over time.
The Ancillary Services Regulations have been amended to change payment rates for clients who must travel for treatment or rehabilitation, along with any escorts or support people. The commercial accommodation rate has risen from $57.55 to $140 per night, and a new $35 per night allowance has been introduced where clients stay with family or friends. The payment continues to be on a per-night basis, not per person.
Non-emergency transport rates have also increased, with the rate for private motor vehicles and other non-emergency transport, such as taxis or non-scheduled passenger services, rising from $0.29 to $0.34 per kilometre. ACC has aligned these rates with the Ministry of Health’s National Travel Assistance Scheme. The changes apply to clients travelling to urban treatment centres, including those from rural or remote areas.
Separate from the regulatory amendments, ACC has implemented its annual financial updates based on movements in the Labour Cost Index and Consumer Price Index. New rates applied from July 1. Clients receiving weekly compensation for more than 26 weeks now receive a 2.89% increase, bringing the maximum gross weekly compensation to $2,418.55. Non-taxable entitlements linked to CPI – including lump sum payments and the independence allowance – have increased by 2.53%.
ACC has also adjusted several grants, with the funeral grant now set at $7,990.30. The survivor’s grant is $8,566.62 for a partner and $4,283.32 for each dependent child or other eligible dependent. Weekly childcare support is $182.17 for one child, $109.30 for two children, and a combined $255.03 for three or more children.
At the same time, the interest rate payable on overdue weekly compensation has decreased from 6.967% to 5.78% per annum. Under section 114 of the Accident Compensation Act 2001, a payment is overdue if it is not processed within one month after ACC has received the necessary information from the claimant.
