ACC Guide New Zealand

How ACC Is Funded

ACC is a pay-as-you-go, no-fault scheme funded by four levy streams rather than by general taxation. The Earners' levy is deducted from employee wages and salaries through PAYE — 1.67% of liable earnings in 2025/26 (capped at $152,790, so the maximum is $2,551.59), rising to 1.75% with a $156,641 cap in 2026/27. The Work levy is paid by employers, averaging $0.66 per $100 of payroll in 2025/26 and $0.69 in 2026/27, with rates varying by industry risk. The Motor Vehicle levy is collected through vehicle licensing and fuel, averaging $122.84 per vehicle in 2025/26 and $131.94 in 2026/27. Self-employed people pay a combined earner-plus-work levy on their liable earnings. The levies are set three years at a time by the government to keep the scheme fully funded while smoothing rate changes — the price of the scheme's promise that anyone injured in an accident gets treatment and income support, no matter who was at fault.

What ACC Covers

ACC (the Accident Compensation Corporation) is New Zealand's universal no-fault injury insurance scheme. If you are injured in an accident — at home, at work, on the road, or playing sport — ACC can cover your treatment costs (GP visits, physiotherapy, surgery), pay weekly compensation of 80% of your pre-injury earnings if you cannot work, fund rehabilitation to get you back to work and daily life, and pay a tax-free lump sum for permanent impairment. In exchange, you generally cannot sue for personal injury. Cover extends to citizens, residents and visitors alike, and claims are free to lodge. The guides on this page explain each part of the system in plain language, with the rates that apply for the 2025/26 and 2026/27 years.

2026/27 Levy Rates at a Glance

ACC is funded by levies, and the rates for 2026/27 (from 1 April 2026) are: Earners' levy 1.75% of liable earnings (up from 1.67% in 2025/26), deducted through PAYE and capped at earnings of $156,641 — a maximum of $2,741.22 per year; Work levy averaging $0.69 per $100 of payroll (up from $0.66), paid by employers and varying by industry risk; and the Motor Vehicle levy averaging $131.94 per vehicle (up from $122.84), paid through vehicle licensing and fuel. From 1 July 2026 the maximum weekly compensation rises to $2,466.20 gross per week. Understanding the levies matters because they are the price of the scheme's promise: injury cover for everyone, funded by everyone.

How to Use This Guide

Start with What is ACC? for the big picture, then How to Make an ACC Claim if you have been injured. If you cannot work, read Weekly Compensation to see exactly how payments are calculated and what the current maximum is. If your claim is declined or your entitlements are cut, Reviews and Appeals explains your rights and the strict time limits (3 months to apply for a review, 28 days to appeal to the District Court). Every page includes the 2026 rates and practical steps you can take. This guide is independent and educational — for your specific claim, ACC's own website (acc.co.nz) and free services like Community Law are the authoritative next stop.

Five Things That Changed in 2026

ACC is on a three-yearly funding cycle, and the 2026 changes are the largest single-year jump in several years. If you are checking whether a figure you were quoted is current, these five are the ones that moved:

• The earners' levy rose from 1.67% to 1.75% on 1 April 2026, and the maximum liable earnings rose from $152,790 to $156,641 — lifting the maximum annual levy from $2,551.59 to $2,741.22.
• The average work levy rose from $0.66 to $0.69 per $100 of payroll, with a further rise to $0.72 forecast for 2027/28.
• The average motor vehicle levy rose from $122.84 to $131.94 per vehicle. From 1 July 2026 motorcycles split into three risk groups (0–250cc, 251–750cc, 751cc+), PHEVs became classified as petrol-powered, and battery EVs remained non-petrol powered.
• The experience-rating threshold for medical and treatment costs rose to $750 from April 2026, bringing more claims into employers' levy calculations.
• The lump sum compensation table was republished for 1 July 2026 to 30 June 2027 — a 10% whole-person impairment is now $4,575.78, rising to the $183,030.60 maximum at 80% or above.

What ACC Does Not Cover

ACC is a no-fault accident scheme, not a health system, and that boundary trips up people who assume the letters on their payslip buy comprehensive cover:

• Illness and disease. Cancer, infections, heart attacks from natural causes, and degenerative conditions generally fall outside ACC — that is what the public health system is for.
• Mental injury on its own. Mental injury is covered when it follows a covered physical injury or sexual abuse, or arises from work-related trauma in specific circumstances, but not as a standalone condition.
• Pain and lost earnings in the lump sum calculation. Permanent impairment compensation measures loss of bodily function, not pain or disability, which is why a claimant in chronic pain can receive a relatively small award.
• Gradual process conditions unless the work contribution is established and the claim is specific enough to survive scrutiny.

Where ACC does cover you, the entitlements are broad — treatment, weekly compensation at 80% of pre-injury earnings, rehabilitation, and lump sum compensation for permanent impairment.