Changes to Accident Compensation Act

The 2021 Accident Compensation Amendment Bill, will be introduced to Parliament later this year with the expectation of being passed by mid-2022.

There are a number of changes that will impact employers:

• Lowering the threshold for injury-related hearing loss cover from 6% to 5%. This is to ensure claimants receive the care they need while maintaining a fair baseline for coverage.
• Requiring ACC take into account what someone earned before an injury, when determining if they can return to work through Vocational Independence. This means certainty for claimants that they will be supported until they are able to return to a suitable job.
• Clarifying the section 30 test for work-related gradual process, disease or infection cover, and put the burden back on ACC to prove that a disease or infection is not work-related.
• Excluding Veterans' Support Act 2014 weekly compensation top-up from abatement against ACC's weekly compensation payments.

The other major changes are around providing additional cover for birth injuries.  The government estimates it will help between 17,000 to 18,000 women each year, and cost ACC around $25 million annually. The definition of accident would remain the same, but it was proposed a list of seven defined physical birth injuries, developed in consultation with ACC and medical experts, be included in the Act.

We see these changes as being practical and fair with respect to claimants particularly with the reduction in the hearing loss threshold. The change to section 30 criteria will make it easier for claims to meet the criteria for cover which in turn will have an impact on employers levies.