Government Introduces Bill to Clarify ACC Payments Impact on Welfare Entitlement

The Government is introducing the Social Security (Accident Compensation and Calculation of Weekly Income) Amendment Bill to clarify how ACC payments affect welfare entitlements and ensure fair treatment between different recipient groups. The bill aims to align the law with longstanding policy by authorizing MSD to retrospectively adjust benefits when backdated ACC payments reduce welfare to zero and to prevent inequities where some recipients receive dual income support for the same need. This legislation responds to court rulings and will not apply retrospectively to cases filed before the bill’s introduction, promoting fairness and certainty in the welfare system.