Dispatch Desk

Government lifts mileage rate for home support workers to 82.5c/km, tied to $3 petrol threshold

Increase takes effect today for up to 12 months, covering Health NZ, MSD and ACC-contracted providers as fuel costs climb.

Source: NZ Government
Government lifts mileage rate for home support workers to 82.5c/km, tied to $3 petrol threshold
New Zealand Cash / Thomas Coker via Unsplash

Mileage reimbursements for home and community support workers have been increased by 30 percent, from 63.5 cents to 82.5 cents per kilometre, with the Government linking the temporary boost to ongoing fuel prices.

Health Minister Simeon Brown said the change applies from today and will remain in place for up to a year, or end earlier if the price of 91 octane petrol falls below $3 per litre for four consecutive weeks. The uplift covers workers employed by providers contracted to Health New Zealand, the Ministry of Social Development, and ACC.

“Home and community support workers play a critical role in delivering essential services,” Brown said. “Their role requires frequent daily travel to provide care in people’s homes, and we are acting quickly to ease the pressure of rising fuel costs caused by conflict in the Middle East while they carry out this vital work.”

Brown framed the move as “timely, targeted, and temporary” support to help keep services operating. “We can’t control global fuel prices, but we can make sure workers delivering essential care are supported to keep services running.”

The Government says the intent is to shore up continuity of care for clients who rely on in‑home health and support, with travel a core part of the job for many in the sector.

The release did not include an estimate of the total cost of the increase or the number of workers it will affect. It also did not specify whether any backpay or retrospective adjustments would apply, or how the rate will be implemented across different provider contracts.

“Temporarily increasing the mileage rate for these workers recognises the vital role they play in our health system and helps ensure they can continue delivering quality care to those who need it most,” Brown said. “We are committed to supporting the workforces who keep essential services running.”

This article was originally written by AI. You can view the original source here.