Changes to client payments from 1 July 2024
We've done our annual review into our payment rates, and we've made some changes that are coming soon.
Each year we look at two indices that let us know if we need to make changes to client payments.
What this means for clients receiving weekly compensation
Based on movements in the March 2024 Labour Cost Index, clients who have been receiving weekly compensation for more than 26 weeks will have their payments increased by 4.14% from 1 July 2024.
The new gross maximum rate of weekly compensation payable will be $2,350.62 per week.
What does this mean for clients receiving other grants and allowances?
Based on movements in the March 2024 Consumer Price Index, non-taxable entitlements [Independence Allowance and Lump Sums] will increase by 4.02% from 1 July 2024.
Funeral grants, survivor grants and weekly childcare payments will increase as follows:
• Funeral grants: $7,793.13
• Survivor’s grants: $8,355.23 for a partner and $4,177.63 for each child under 18 and each other dependent
• Weekly childcare payments: $177.67 for one child, $106.60 each for two children and $248.74 in total for three or more children.
Changes to interest rates paid on overdue weekly compensation
The interest rate we’ll pay on overdue weekly compensation payments will change to 6.967% per annum. Up until 30 June 2024, the interest rate continues to be 5.42% per annum.
A payment is considered overdue if we’ve taken more than one month to pay a client after we've received the information we need to calculate and make it.
The legislation
The legislation relating to overdue weekly compensation payments and interest rates is set out in in section 114 of the Accident Compensation Act 2001.
NZ Legislation website: