Fuseworks Media

Fairer taxation of ACC payments through National MP’s bill – Hamish Campbell

The Income Tax (ACC Payments) Amendment Bill, drawn today, would ensure those who receive lump sum ACC payments are not unfairly taxed, says National MP for Ilam Hamish Campbell.

“Currently, almost all lump sum ACC payments are taxed in the income year they are received, which can lead to a recipient being taxed more than if they had received the correct payments in their relative year,” says Dr Campbell.

“People receiving these payments have often been through extreme stress, with unfair taxation of their payments further contributing to that. The legislation doesn’t provide for fairer taxation of these payments and my bill would fix that.

“My bill would allow payments made under the Accident Compensation Act 2001, which were initially unsuccessful, to be taxable at the rates that would have applied had the original claim been approved.

“Some people have taken this issue to court to point out it would make sense to be taxed as though they had received their ACC payment as intended and I believe this problem should be addressed.

“Some ACC payments can be awarded well after initial claims are made, either through a court decision, a revised decision or a review, leading to a tax treatment that could differ from when the claim was first made.

“This change will ensure fairness in taxation of lump sum ACC payments and I’ll be seeking support for it to pass.”


Powered by Fuseworks and Truescope - Media monitoring, insights and news distribution for New Zealand organisations.