What is an ACC Lump Sum Payment?
If you suffer a permanent impairment as a result of a covered ACC injury, you may be entitled to a lump sum payment. This is a one-off, tax-free payment intended to compensate for the loss of bodily function or disfigurement. It is separate from weekly compensation and treatment costs.
Who is Eligible?
You may be eligible for a lump sum payment if:
- Your injury is covered by ACC
- You have a permanent impairment assessed at 10% or more of whole-person impairment
- Your injury occurred on or after 1 April 2002 (injuries before that date use a different, older system based on "physical loss of function" under the old Accident Insurance Act)
- Your condition has stabilised (you've reached "maximum medical improvement")
How the Lump Sum is Calculated
The lump sum is based on a percentage of a statutory amount, scaled by your assessed whole-person impairment (WPI):
- Base amount (2024/25): $155,656 (indexed annually to the Consumer Price Index)
- For 10% WPI: You receive 10% of the base amount = approximately $15,565
- For 100% WPI: You receive 100% of the base amount = approximately $155,656
Impairment is assessed using the AMA Guides to the Evaluation of Permanent Impairment (American Medical Association), and the assessment is done by an ACC-approved assessor.
How to Apply
- Discuss with your GP or specialist whether you may have a permanent impairment.
- Contact ACC and request an assessment for permanent impairment.
- ACC appoints an independent assessor (usually a specialist doctor) to evaluate your impairment using the AMA Guides.
- The assessor provides a report with a Whole Person Impairment (WPI) percentage.
- ACC makes a decision: if WPI ≥ 10%, you receive a lump sum.
- If you disagree with the assessment, you can request a review or a second opinion.
Taxation
Lump sum payments for permanent impairment are tax-free. You do not need to declare them on your tax return.
Interaction with Other Entitlements
Receiving a lump sum does not affect your weekly compensation or your entitlement to ongoing medical treatment. It is a separate compensation for the permanent impact of the injury.
What if You Were Injured Before 1 April 2002?
For pre-2002 injuries, a different scheme applies. You may be entitled to an "Independence Allowance" (a small quarterly payment) under the old Accident Rehabilitation and Compensation Insurance Act 1992. The assessment uses a different impairment schedule.