The ACC funeral grant: how much it pays, who can claim it and how
Financial advice is provided by Craig Smith Business Services Limited, trading as Smiths Insurance & KiwiSaver, a licensed Financial Advice Provider (FSP712931). QuoteHub is a trading name.
ACC pays a funeral grant of up to $8,236.40 towards funeral and memorial costs, tax-free, when a death is from an injury ACC covers (ACC, Financial support after a fatal injury, retrieved 9 September 2026). It sits alongside a separate one-off survivor's grant and, where the deceased was earning, ongoing income compensation for a partner and children.
How much does ACC pay for a funeral?
The ACC funeral grant is larger than Work and Income's equivalent, and the amount is fixed to the date of death rather than the date you apply, so it can differ from the figure ACC currently advertises if the death happened in an earlier year.
ACC can pay a funeral grant of up to $8,236.40 towards funeral and memorial costs, and this amount is reviewed annually and based on the date the person died, not the date of the claim (ACC, retrieved 9 September 2026). ACC also confirms the payment is not taxed.
What is the maximum Funeral Grant from ACC?
The maximum is $8,236.40, effective from 1 July 2026 following ACC's annual review against the Consumer Price Index (ACC, Changes to ACC client payments from 1 July 2026, retrieved 9 September 2026). ACC bases the amount payable on the date the person passed away, so an earlier death may attract a different published rate.
How much does ACC payout for a death?
ACC can pay several things together: a funeral grant of up to $8,236.40, a one-off survivor's grant of $8,830.47 for a partner or $4,415.25 per child or dependant, and, if the deceased was earning, up to 80% of their lost earnings as ongoing compensation to the family (ACC, retrieved 9 September 2026). The total therefore depends heavily on whether the deceased had dependants and an income.
Does ACC cover funeral expenses?
Only if the death is from an injury ACC covers, which generally means an accident rather than an illness or a condition that developed over time. ACC's funeral grant applies specifically to deaths from injuries ACC covers, so if the death was from illness, natural causes or a condition ACC does not accept as an accident-caused injury, this grant does not apply and the Work and Income Funeral Grant is the relevant scheme instead (ACC, retrieved 9 September 2026).
Does the ACC funeral grant count as taxable income?
No. ACC states plainly that you will not pay tax on the funeral grant, and the same applies to the survivor's grant and the weekly childcare payments (ACC, retrieved 9 September 2026). The ongoing weekly compensation for loss of income follows different tax treatment, since it replaces earnings.
What the grant can be spent on
ACC deliberately keeps this list broad rather than itemised, because it says funeral expenses are unique to each family. The categories below are the ones it names, and it will pay the funeral director directly or reimburse you if you have already paid.
The table below sets out what ACC names as covered, alongside the extra support for a smaller group of claims.
| ACC payment | Amount | What it is for |
|---|---|---|
| Funeral grant | Up to $8,236.40 | Burial, cremation, funeral services, preparation or transport of the body, flowers, death certificates, memorial services |
| Homicide top-up | Up to $10,000 total (including the funeral grant) | Extra support for families of murder or manslaughter victims |
| Survivor's grant, partner | $8,830.47 (one-off) | General support, not restricted to funeral costs |
| Survivor's grant, child or other dependant | $4,415.25 each (one-off) | General support, not restricted to funeral costs |
(ACC, Financial support after a fatal injury; ACC, Changes to ACC client payments from 1 July 2026; retrieved 9 September 2026.)
Can the funeral or memorial be held overseas?
Yes. ACC says you can choose to have the funeral or memorial in New Zealand or overseas, and the funeral grant is not restricted to New Zealand-based costs (ACC, retrieved 9 September 2026).
Is a death from a work-related illness covered, or only a workplace accident?
ACC's cover generally turns on whether the injury or death arose from an accident, so a sudden workplace accident is more likely to qualify than a work-related illness that developed gradually, which is assessed under separate gradual-process rules rather than as an accident. Our companion guide on what a funeral actually costs in New Zealand is the place to start if ACC cover does not apply and the family is meeting the cost directly.
Who counts as a partner, child or dependant
ACC's definitions matter because they decide who can receive the survivor's grant and ongoing compensation, not just who can apply for the funeral grant.
ACC defines a partner as the deceased's husband, wife, or someone they were living with in the nature of marriage, including where they were living apart for work, health or imprisonment reasons; children include natural or adopted children (even if born up to a year after the death) and children the deceased lived with and cared for; and other dependants means a disabled person who received financial support from the deceased (ACC, retrieved 9 September 2026).
Who is eligible for the ACC funeral grant?
Anyone applying on behalf of a person who died from an ACC-covered injury can apply using the ACC21 form, and one of the following must sign it: the spouse or partner, next of kin, or the executor of the will (ACC, retrieved 9 September 2026). There is no separate income or asset test for the funeral grant itself, unlike the Work and Income equivalent.
Does ACC still do lump sum payments?
Yes, in the form of the survivor's grant, which is a one-off, tax-free lump sum rather than an ongoing payment. ACC currently pays $8,830.47 to a surviving spouse or partner and $4,415.25 to each child under 18 or other dependant, with the amount to a child under 16 going to their parent or caregiver (ACC, retrieved 9 September 2026). These figures also depend on the date of death and are reviewed annually.
Ongoing support for children and lost income
Beyond the one-off grants, ACC can provide two forms of continuing support where the deceased was supporting a family: help with childcare costs, and compensation for lost earnings.
ACC pays weekly childcare support of $187.78 for one child, $112.67 each for two children, or $262.88 in total for three or more children, for up to five years or until the child turns 14, whichever comes first, and this is not taxed though it may affect Work and Income support (ACC, retrieved 9 September 2026). Where the deceased was earning, ACC can pay up to 80% of their lost earnings, split between the partner and dependants, continuing to a partner for five years or until the youngest child turns 18, and to a child until they turn 18 (or 21 if in full-time study), whichever is later.
Do these payments affect New Zealand Superannuation or other benefits?
ACC says NZ Superannuation may affect the weekly compensation payments, and the childcare payments, while tax-free, may affect other Work and Income support (ACC, retrieved 9 September 2026). Check with Work and Income directly if you are already receiving a benefit or superannuation.
Can someone living overseas still get ACC's survivor support?
Yes. ACC says a person living overseas can still receive these payments if they have a New Zealand bank account and an IRD number (ACC, retrieved 9 September 2026).
Can more than one family member get support after the same death?
Yes, in the sense that the survivor's grant and ongoing compensation are split across a partner, children and other dependants rather than paid to a single applicant. ACC says it will talk to the family about how the lost-earnings compensation is divided between the partner, children and other dependants (ACC, retrieved 9 September 2026), so the application should identify everyone who may qualify.
What happens if there is no will or executor to sign the ACC21 form?
The form can still be signed by the spouse or partner or by the next of kin, so the absence of a will or a formally appointed executor does not block an application (ACC, retrieved 9 September 2026). Where there is genuinely no will, our guide to dying without a will in New Zealand covers who becomes the estate's administrator instead.
How to apply
The application uses a single form covering the funeral grant, survivor's grant and any ongoing compensation together, and ACC assigns a dedicated Cover Assessor to walk the family through the rest of the process.
To apply, complete the ACC21 Advice of Accidental Death form and have it signed by the spouse or partner, next of kin, or the executor of the will, then send it to ACC's Hamilton Service Centre; anyone, including a friend, family member or the funeral director, can fill in the form for you (ACC, retrieved 9 September 2026). ACC says there is no time limit on when you can apply.
| Step | Detail |
|---|---|
| Form | ACC21 Advice of Accidental Death |
| Who signs | Spouse/partner, next of kin, or executor of the will |
| Who can help complete it | Anyone: a friend, family member, social worker, minister, or the funeral director |
| Where it goes | ACC Hamilton Service Centre, PO Box 952, Hamilton 3240, or email [email protected] |
| Time limit | None published |
(ACC, Financial support after a fatal injury, retrieved 9 September 2026.)
Where can I get extra support after a sudden or traumatic death?
ACC lists Victim Support, which offers free nationwide support for people affected by crime and traumatic events, and Skylight Trust, which helps young people through grief and loss, as well as Work and Income and Citizens Advice Bureau for wider practical help (ACC, retrieved 9 September 2026). These sit alongside the financial grants and are not means-tested.
How this fits with the rest of what you need to sort out
The ACC funeral grant is the larger of New Zealand's two government funeral grants, but it only applies to a minority of deaths, those ACC accepts as accident-caused. For every other death, the Work and Income Funeral Grant is the relevant scheme, and the two are not paid on top of each other for the same costs.
| Grant | Applies when | Maximum |
|---|---|---|
| ACC funeral grant (this page) | Death from an ACC-covered injury | $8,236.40, plus up to $10,000 total for homicide |
| Work and Income Funeral Grant | Any death, subject to income and asset tests | $2,697.43 |
(ACC; Work and Income; see individual pages for sources and dates.)
While you are dealing with ACC, it is worth checking bereavement leave for time off work, who to notify after a death for the wider list of organisations to contact, and what a funeral actually costs in New Zealand to compare against what the grant covers, alongside cremation cost and how to pay for a funeral if the family needs to bridge a gap while ACC processes the claim. If the death also triggers a claim on a life insurance, trauma cover or income protection policy, our guide to how a life insurance payout works after death covers that separate process, and how to claim life insurance in New Zealand walks through the paperwork. Where the death has left debts behind, what happens to debt when someone dies explains what the estate is still liable for.
Where an accidental death leaves an estate to administer, probate in New Zealand and the executor's duties usually run alongside the ACC claim rather than after it. QuoteHub's read is that ACC's income compensation is the most under-claimed part of this page, because families focus on the funeral grant and miss the weekly compensation and childcare payments that can run for years. Financial advice is provided by Craig Smith Business Services Limited, trading as Smiths Insurance & KiwiSaver, a licensed Financial Advice Provider (FSP712931). QuoteHub is a trading name. ACC's income compensation replaces some lost earnings after an accidental death, but it does not apply to death from illness, which is the gap life insurance and trauma cover are designed to close. If you want to check whether your own family would be covered either way, start a free comparison.
Adviser's view
What QuoteHub flags most often is families assuming any death qualifies for the ACC funeral grant, when it only applies where ACC accepts the death as accident-caused, not illness or natural causes. That distinction decides whether a family gets the larger ACC payment or the smaller Work and Income grant instead, and confusing the two costs time during the week it matters most.
Talk to a licensed adviser about funeral cover · free, no obligation.
Cite this page QuoteHub NZ (2026). ACC Funeral Grant NZ: How Much, Who Gets It, How to Claim. www.quotehub.co.nz/guides/when-someone-dies/acc-funeral-grant. Updated 2026-09-09.
References
- ACC: Financial support after a fatal injury
- ACC: Changes to ACC client payments from 1 July 2026
- ACC: ACC21 Advice of accidental death (DOCX)
- Work and Income: Funeral Grant
Explore related pages: Life Insurance, Income Protection, Health Insurance, Trauma Insurance, For Brokers.