This bill amends the Social Security Act 2018 to confirm what the Government describes as longstanding policy intent behind MSD's practice on backdated ACC payments. It follows a High Court decision of 14 October 2025 holding that MSD was not operating in accordance with the current provisions: while section 252 of the Accident Compensation Act 2001 lets MSD recover main benefit payments directly from ACC, it does not change a person's status as a beneficiary for the reimbursed period, so MSD could not treat them as a non-beneficiary when retrospectively reviewing supplementary assistance for the same period. The bill requires MSD to review specified supplementary assistance granted for a period in which a person receives a backdated ACC payment, allows entitlement to be suspended, cancelled or varied for that period, and requires MSD to treat the person as a non-beneficiary for that review where their benefit reduces to zero. It also requires income to be attributed to the period it was earned in or that the entitlement to it arose for. The bill has been enacted.
Parliament advanced this bill under urgency (first reading) — moving it through faster than usual, with less time than normal for public submissions.
This bill amends the Social Security Act 2018 to confirm longstanding Ministry of Social Development practice for how backdated Accident Compensation payments are treated, charging such a payment as income against the past period it relates to. Its stated objectives are to reflect a targeted welfare system, where assistance is set relative to income, and to prevent inequities between people who receive ACC weekly compensation at the time and those who receive backdated ACC payments long after the relevant period. It responds to an October 2025 High Court decision that found the practice was not consistent with the current wording of the law.
Supporters argue that confirming the settled policy keeps the welfare system fair and consistent, so that a later backdated payment is treated the same as compensation received at the time. Others may examine how affected people who already received supplementary assistance for a past period are treated when that period is reviewed and adjusted.
See the Parliament.nz ↗ site for the full bill.