New Zealand's Accident Compensation Scheme

A unique part of New Zealand's public health system is ACC, the Accident Compensation Corporation. New Zealand’s ACC Scheme has provided everyone in New Zealand with comprehensive 24-hour, no-fault personal injury cover since 1974.

So if you’re a resident, citizen or visitor to New Zealand and are injured in your home, at work, on the road or elsewhere, then you are entitled to put in a claim for that injury.

If your claim is accepted you could receive assistance towards a number of things including; medical treatment, rehabilitation or weekly compensation if you are off work for more than a week. It also covers New Zealand residents travelling overseas – as long as they have not been out of the country for more than six months. 

No other country in the world has such a comprehensive state-owned accident compensation scheme that is open to all, and it is something New Zealand is proud of.

Who is covered under ACC?

Basically, if you are in New Zealand, you are covered by ACC whether you are at work, at home, or out and about. It does not matter what kind of visa or permit you are on – visitor, permanent residence or work.

If you are a New Zealand citizen or permanent resident, you can also claim for accidents which happen to you when you are overseas as long as you have not been out of New Zealand for more than 6 months.

What is the catch?

The catch, if you can call it that, is that you do not have the right to sue for injuries that are covered by ACC, other than for exemplary damages.

What am I covered for?

Most physical injuries are covered if they’re caused by:

• an accident
• a condition that comes on gradually because of your work (gradual process)
• medical treatment
• sexual assault or abuse

Some cover is also provided for death as a result of the above injuries. It does not matter whose fault the accident was, or where the injury happened.

What is not covered under ACC?

Broadly speaking, you are not covered under ACC for:

• illness
• stress and emotional issues
• injuries related mainly to ageing
• non-traumatic hernias (eg from coughing or sneezing, or not directly as a result of trauma)
• injuries that come on gradually and are not due to a work task

What level of cover is provided?

Broadly speaking, ACC assists with medical costs and rehabilitation, and there is also an element of income support. One of the ACC’s primary aims is to get people who have suffered an injured party back to work again.

• ACC covers the cost of emergency transport, emergency hospital services, doctors’ visits and a wide range of treatments including dentistry, physiotherapy and acupuncture. 
• ACC can either pay in full or help with the cost of elective surgery, as well as providing help in managing different aspects of treatment and rehabilitation throughout your recovery. 
• ACC pays for services such as home help and travel to treatment.
• ACC pays for training for future employment when people have lost their jobs because of an injury.
• ACC provides weekly compensation of up to 80 percent of your normal weekly wage if you are off work for more than one week when recovering from an accident.

How is ACC funded?

Every year ACC spends about $1.4 billion on rehabilitation, treatment and weekly compensation, and funds this by levies it collects and the income it earns from its investments.

All taxpayers, employers, self-employed people and motor vehicle owners contribute towards the funding of the scheme, with the Government contributing on behalf of non-earners, such as children and the elderly.

How much will this cost me as a car owner in New Zealand?

You pay an ACC levy with your Motor Vehicle Registration, and part of the cost of each litre of petrol you buy also goes to fund ACC.

How much will this cost me as an employee in New Zealand?

Part of the tax taken from your wage and salary income under the PAYE (Pay As You Earn) scheme goes to fund ACC. This is known as the ACC earners' levy. In the 2009/10 tax year this was 1.7% of wage and salary earnings, up to a maximum of $1,810 per year.

How much will this cost me as an employer or self-employed person in New Zealand?

ACC collects levies from employers and self-employed people. The amount you pay per employee varies by which industry you are in – high-risk industries pay more.

How do I find out more about ACC?

Broadbase International will work with you every step of the way to help you make a confident start to your new life in New Zealand. Please contact us if you have any questions about the financial side of life in New Zealand, and don't forget to order your free copy of our comprehensive New Zealand Guide.