ACC
The Accident Compensation Corporation (ACC) provides comprehensive, no-fault personal injury cover for all New Zealand residents and visitors. If you're injured in an accident — at work, at home, playing sport, or on the road — ACC covers treatment costs, income compensation, and rehabilitation. In exchange, New Zealanders cannot sue for personal injury.
ACC is funded through several levy streams: the earner's levy (deducted from employees via PAYE), the work levy (paid by employers based on industry risk), and the motor vehicle levy (paid through vehicle registration). For 2026-27, the earner's levy is 1.75% on earnings up to $156,641 (2025-26: 1.67% up to $152,790).
ACC cover includes medical treatment, surgery, physiotherapy, weekly compensation (80% of pre-injury earnings if you can't work), lump-sum payments for permanent impairment, and vocational rehabilitation to help you return to work.
How it works
ACC's no-fault model means it doesn't matter who caused your injury — you're covered regardless of fault, but in exchange you give up the right to sue anyone for personal injury damages. Cover extends to everyone physically in New Zealand, including tourists and temporary visitors, not just residents and citizens.
It's worth being clear that ACC covers injuries, not illness — a workplace accident or a sports injury is covered, but a medical condition that develops on its own generally isn't. The scheme is funded through separate levy accounts (earner's, work, and motor vehicle), each targeting a different source of injury risk, so the levy you pay depends on how you earn income and whether you own a vehicle.
If you're injured and need to make a claim, your treatment provider (GP, physio, hospital) usually lodges the ACC claim for you at your first appointment. Once accepted, ACC can cover treatment costs, weekly income compensation if you can't work, and support to help you get back to work or daily life.
Example: weekly compensation after an injury
If you were earning $1,200 a week before an injury that stops you from working, ACC's weekly compensation is calculated as 80% of that pre-injury income: 80% × $1,200 = $960 per week while you're unable to work.
Frequently asked questions
Does ACC cover illness as well as injury?
No — ACC cover is specifically for personal injury from an accident; ongoing medical conditions or illnesses that aren't the result of an accident fall outside the scheme.
Are self-employed people covered by ACC?
Yes — self-employed people are covered for injury just like employees, but they pay their ACC levies directly (earner's levy plus a work levy based on their industry) rather than through an employer's payroll.
Can I choose not to be covered by ACC?
No — ACC cover and the levies that fund it are compulsory in New Zealand; you can't opt out of the scheme or choose to sue for personal injury instead.
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