Ex gratia and compensation payments
Ex gratia or compensation payments don’t need to be declared as income. But if you get Accommodation Supplement, Temporary Additional Support or Special Benefit you do need to tell us about it.
What is this?
You may get an ex gratia payment from the Government if you’ve been harmed in some way. An ex gratia payment means there’s no acceptance of blame and no legal requirement to pay you.
A compensation payment is also made because of harm done, but this payment is ordered by a court or a tribunal. Other times it’s made to settle a claim filed in court against the Crown, or it might be for a claim of harm that hasn’t gone to court.
These payments must be for cases of harm, not for other things like:
- a loss eg involving money, land, an asset or goods and services you’ve provided
- a personal grievance at work.
Ex-gratia and compensation payments for harm won’t affect your benefit for 12 months. After this time we will look to adjust your benefit.
Ex-soldiers and their families are exempt
Your benefit won’t be affected for the long-term if the payment is:
- made by any country because you (or your partner) were a prisoner of war in World War II. Or you are a child of a prisoner of war
- from Veterans' Affairs New Zealand to Vietnam veterans or their partner, or their children and their immediate families.
This doesn’t include payments from Viet Nam Veterans and Their Families Trust and the EVSA (Neville Wallace Memorial) Children's and Grandchildren's Trust. Your benefit will be affected after 12 months if you get payments from these trusts.
How it affects your benefit and allowances
You have to tell us about this payment if you:
- get Accommodation Supplement, Temporary Additional Support or Special Benefit
- invest the money you get and earn interest, dividends or rent, this will be counted as income.
If you need more information or want to discuss this in more detail contact us