Despite soaring petrol prices, ACC mileage rates have not increased in more than a decade, leaving some patients paying hundreds of dollars to access healthcare.

Northland resident Aaron Barton​ said ACC had underpaid him hundreds due to the outdated regulations, as rising fuel costs weren’t matched by the mileage rates set.

After injuring his elbow earlier this year, the Kerikeri man needed specialist care unavailable at his local hospital had to travel to Auckland for treatment.

Barton made the nearly 500-kilometre round trip to Auckland three times between March and May. He said he filled his 65 litre tank for each leg of the journey, meaning the treatment cost him nearly $1200 in fuel. But ACC only reimbursed him $412.96 for all three trips.

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In some circumstances, ACC can help with travel-related costs and pays 29 cents per kilometre travelled by a private motor vehicle.

The rate was last reviewed in 2010. Barton said it was out of date given the cost of living crisis, which has left many unable to fill their fuel tanks.

“If ACC say they are going to help out, it should be a reasonable amount,” he said. “My bone with them was 29c a kilometre doesn’t cover fuel of any vehicle. And, certainly, if you’re using your own vehicle it doesn’t cover true running costs.”

In 2010, petrol cost $1.73 per litre and diesel $1.16.

In May this year, Auckland set a national record of $3.19 for a litre of 91 octane. Diesel was $3.05.

In 2010, when the rate was last reviewed, it would have cost Barton $452.40 in fuel to make all three trips and he would have received the same amount – $412.96 – in travel expenses from ACC. That meant a shortfall of about $40 in 2010 had grown to nearly $800 in 2022.

Due to the expense, Barton decided to undertake his remaining follow-up appointments over the phone. Barton said he complained to ACC, which suggested he contact ACC Minister Carmel Sepuloni as mileage rates were governed by legislation.

In a letter to Barton, Sepuloni said ACC mileage rates were set to a similar level as Inland Revenue’s tier 2 rate, which is 31c per kilometre for 2021/22.

The tier 2 rate “is for running costs only”, according to Inland Revenue, and should apply to travel over 14,000 per year. Business travel up to 14,000km can be claimed at 83c per kilometre in 2021/22.

Inland Revenue sets the tier 2 rate annually. Over the past four years, the tier 2 rate had averaged at 28c, Sepuloni said. In 2010, the mileage rate was 70 cents per kilometre.

“I understand that recent increases in fuel prices are a frustration for some ACC claimants who use a private motor vehicle for travel relating to treatment and rehabilitation.

“However, it is necessary to take a long-term view of the ACC mileage rate and avoid making long-term changes as an immediate reaction to increases in fuel prices,” Sepuloni said in the letter.

An ACC spokesperson confirmed the rate had not been reviewed since October 2010, but directed all questions on to the Ministry of Business, Innovation and Employment.

The ministry’s manager for accident compensation policy Hayden Fenwick​ said the rate was not determined annually and was set at a level expected to reflect alignment with the IRD rate.

“The current 29 cent per kilometre rate has enabled fair alignment over time with the IRD rate, in some years being higher than IRD’s rate.”

Fenwick said it would not be “appropriate” for ACC reimbursement to align with IRD’s Tier 1 rate of 83c per kilometre in 2021/22, as it covered both running costs and fixed ownership costs.