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Independence Allowance Lump sum or not?

#1 User is offline   jantol 

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  Posted 03 December 2004 - 09:43 PM

Hi can anyone tell me about the lump sum for independence allowance that ACC has offered me, it covers 5years. I know it is Tax free but have been advised that it might interfere with my husbands and my accommodation and disability allowances. Is this right? We have been on ACC for so long (since 85) and this is quite a nice sum that we could use to buy a car that we badly need, but I'm a bit apprehensive about accepting it if it is going to reduce our allowances. Would be grateful of any ones assistance with this. :unsure:
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#2 User is offline   pacific 

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Posted 04 December 2004 - 11:19 AM

Hi

I thought it was supposed to be tax free, but have found that it is taxed, considered part of my total income and student loan deductions are paid.

I'm really disappointed about this because it affects my overall income.

Maybe someone can clarify if this is leagal.

Good luck
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#3 User is offline   ernie 

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Posted 04 December 2004 - 05:24 PM

Independence Allowance and Lump Sum compensation for permanent impairment are specifically excluded from the definition of income in section 3 of the Social Security Act 1964, so cannot be charged as such against either an accommodation supplement or a disability allowance - http://www.workandincome.govt.nz/manuals-a....htm#P573_21532

However, if you retain it as a cash asset, it can have an effect as such on accommodation supplement, because this is cash asset tested. For a couple, cash assets start to reduce accommodation supplement if the amount is in excess of $5400, and completely wipe out entitlement to accommodation supplement if in excess of $16,200.

If you have been on ACC since 1985 I am sure you will have something you need to spend it on, so wont have it sitting around in the bank as a cash asset, so probably should not be a problem in your case, Jantol.
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#4 User is offline   jantol 

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  Posted 04 December 2004 - 10:01 PM

:D Thanks for the info ernie, I was hoping some one would think the same as me,
do you think I need to tell Work and Income about the payment at all , as it will be in and straight out of our account again. ACC won't tell them will they?? :wacko:
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#5 User is offline   ernie 

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Posted 04 December 2004 - 10:41 PM

ACC cannot lawfully tell them. The obligation you have under section 80A of the Social Security Act 1964 is only to tell Work and Income of changes of circumstance that affect benefit entitlement or rate. If it does not have any effect, then you do not have to tell them.
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#6 User is offline   fairgo 

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Posted 05 December 2004 - 10:09 AM

This raises an interesting point. I asked ACC on behalf of a student if they had to declare the winning of a scholarship especially set up for students with a disability. The answe came back that the scholarship would not be classed as income for ERC abatement purposes but that they had a responsibility to inform ACC they had received such an award. I actually don't understand why this should be the case. If it isn't income I believe there is no requirement to inform ACC at all.... a bit like winning lotto...
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#7 User is offline   Juscallin1 

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Posted 05 December 2004 - 02:19 PM

:lol: ACC like to know everything about our lives so that they can be in control??
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#8 User is offline   doppelganger 

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Posted 05 December 2004 - 02:36 PM

Justcallin the only think they are in control.

in most cases they do try to control the claimants lives. this can be seen when a claimant try's to gain Vocational Rehabilitation. More often than not when a request for a Vocational Rehabilitation entitlement is requested the corporation will contact the private investigator to spy on the rehabilitation. the corporation then call this rehabilitation work.

the circle goes around and around. the corporation only want litigation, litigation andnothing else. this is to support the DRSL, and contract lawyers.
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#9 User is offline   ernie 

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Posted 06 December 2004 - 07:33 AM

Fairgo, you are right. The obligation under section 72(1)(b) IPRC Act is that a claimant receiving entitlements must "give the Corporation any other relevant information that the Corporation requires".

If the information is not relevant to the claimant's entitlements, then the Corporation cannot require it.

But they try to. A few years ago I was attempting to get a claimant's overpayment written off. The overpayment was caused solely as a result of the Corporation's mistake, and the claimant had entered into various financial commitments in reliance on the money she had received being hers. ACC attempted to require her to declare to them her husband's income and assets (this was on their standard form - probably still is, haven't seen one recently).

ACC refused to write off the debt becasue she would not provide this information. So we went to review. The reviewer found that her husband's income and assets was of no relevance her entitlements or to whether it would be inequitable to require her to repay the debt, quashed ACC's decision, and remitted her debt.
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#10 User is offline   scrumpy 

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Posted 03 April 2011 - 05:05 PM

How do you go about getting gym equipment? we asked case manager about getting a recumbent excercycle to help my husbabd who has 2 stuffed shoulders, and were told no, the same happened when we asked about a mattress overlay. Case manager said ACC doesnt provide these???? It seems again that they lied to us.
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