Teina Pora has filed court proceedings asking the Government to review its decision to not add inflation to the $2.5 million compensation he received for wrongful conviction.
Mr Pora was convicted in 1994 of the 1992 rape and murder of Susan Burdett, who was bludgeoned to death with a baseball bat in her South Auckland home.
New evidence presented to the Privy Council showed Mr Pora suffered from foetal alcohol syndrome that made his confession, which was key to his original conviction, unsafe.
Speaking to Newshub, Mr Pora's lawyer Johnathan Krebs confirmed an application for a judicial review has been filed in the High Court in Wellington.
"We've spent some time having a look at the law around all of this and what's possible and on Teina's instruction what are called judicial review procedings to review Cabinet's decision," he said.
Despite the advice given by High Court judge Rodney Hansen, QC, to incorporate inflation in June, Cabinet decided not to on the advice of Justice Minister Amy Adams.