Changes to client payments from 1 July 2023
Our annual review into our payment rates is complete, and we've made some changes that are coming from 1 July.
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 Labour Cost Index this year, we will increase payments by 4.32% for clients who have been receiving weekly compensation for more than 26 weeks.
The new gross maximum rate of weekly compensation payable will be $2,257.17 per week.
What does this mean for clients receiving other grants and allowances?
Based on movements in the Consumer Price Index, non-taxable entitlements (Independence Allowance and Lump Sums) will increase by 6.65%.
Funeral grants, survivor grants and weekly childcare payments will increase to the following amounts:
- Funeral grants: $7,491.95
- Survivor's grants: $8,032.33 for a partner and $4,016.18 for each child under 18 and each other dependent
- Weekly childcare payments: $170.80 for one child, $102.48 each for two children and $239.13 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 5.42% per annum. Up until 30 June 2023, the interest rate continues to be 2.477% 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 the Accident Compensation Act 2001.
