What is New Zealand’s ACC? ～Insurance basics for self-employed workers in NZ～
- Aya
- Sep 20
- 7 min read
What is ACC? An Overview of New Zealand’s Accident Compensation Corporation
New Zealand has an accident compensation system called ACC (Accident Compensation Corporation). Similar to Japan’s National Health Insurance, everyone living in New Zealand is covered by this accident compensation system regardless of age.
ACC covers all New Zealand residents regardless of their employment status, including those who are working, unemployed, or retired.
It is also notable that visitors to New Zealand are included in the accident compensation coverage.
Vision of ACC: Tōnui Ake Nei | Thriving Aotearoa
ACC operates under the vision of “Tōnui Ake Nei | Thriving Aotearoa.”
Tōnui means “to thrive and prosper” in Maori, while Ake Nei means “increasing, rising, of great importance.”
Based on this vision of working together so that all people and their communities can live valuable lives, those who work in New Zealand are required to pay a tax called the ACC Levy.
If you would like to know more, please visit ACC’s “What we do” page.
What ACC Insurance Covers
New Zealand’s accident compensation system ACC is designed to improve daily life by focusing on prevention, injury care and recovery for all people in New Zealand who are affected by injury.
As the name “accident compensation system” suggests, the coverage is limited to injuries caused by accidents. It does not apply to illnesses, conditions related to aging, or mental health issues.
Coverage includes medical treatment for accident-related injuries, support at home or in the workplace, and income support, with the goal of covering costs related to recovery.
For someone like me who is self-employed, if I were to be injured in a traffic accident and unable to work for several months, ACC would provide income support and cover medical expenses during that time.
This makes it a very reassuring system.
ACCが徴収している税金は何に使われているのか
ACCのウェブサイトには、徴収された税金がどのような内容・サービスに使われているかが明記されています。
① Loss of income
If you are unable to work due to an injury covered by ACC, up to 80 percent of your income will be paid.
② Treatment and rehabilitation
Collected levies are used for medical treatment, doctor visits, rehabilitation programs, and the cost of equipment that supports recovery.
③ Help with everyday activities
ACC uses levies to support the daily lives of all people in New Zealand. This may include childcare, home care, or transport costs for school and the workplace.
④ Preventing injury
Levies are also used for injury prevention programs to help reduce accidents before they happen.
It is impressive that the ACC website provides such a clear and simple explanation of how levies are used.
For more details, please see the ACC website page “What your levies pay for.”
Self-Employed Workers (Freelancers) and the ACC Insurance System in New Zealand
I am currently working in New Zealand as a self-employed freelance designer, and the main taxes I pay each year are ACC, income tax, and vehicle tax.
In Japan, there are many different types of taxes and insurances such as social insurance, employment insurance, health insurance, and resident tax. (´;ω;｀)
Most official websites are filled with text and hard to understand, so compared with Japan, I find the system in New Zealand much simpler and easier to follow.
When working as a self-employed person in New Zealand, you are classified as either “Self-Employed” or “Sole Trader.”
In this blog, I will share from the perspective of a self-employed worker my personal experience with ACC, including the timing of payments and a general sense of the costs.
Taxes Paid by the Self-Employed: The ACC Levy
For self-employed workers in New Zealand, ACC automatically enrolls you in a plan called Cover Plus.
After I moved to New Zealand and obtained a business registration number known as NZBN, I received a letter confirming that I had been automatically enrolled in ACC without needing to submit any additional application.
For more information on how to obtain an NZBN, please check this article 👇
Basically, when you live in New Zealand you create an account called “RealMe,” which links all government-related information such as taxes and visas.
You can also log in to ACC with your RealMe account. On the login screen you will see two options at the top: MyACC and MyACC for Business.
I log in through MyACC for Business. There are differences between being self-employed and being an employee, so if you have trouble logging in, check which type of account you have created.
(I once mistakenly tried logging in to MyACC and was startled when I got an error message saying that no account was registered for me…(´･ω･`;))
Standard Cover for Self-Employed Workers in New Zealand
The ACC plan called Cover Plus, which self-employed workers in New Zealand are automatically enrolled in, provides standard cover.
If you are injured in an accident and unable to work, up to 80 percent of your taxable income based on the most recent financial year will be paid as compensation.
The ACC page “Cover for self-employed” provides specific examples of how this works.
For example, if you earn $52,000 per year on CoverPlus you'd get up to 80% of that each week, which is $800 before tax. Weekly compensation payments start a week after your injury, and we’ll also help cover the cost of your treatment and rehabilitation. ーACC Cover for self-employed （https://www.acc.co.nz/for-business/understanding-your-cover-options/types-of-cover-for-self-employed）
On the ACC website it is referred to as Cover Plus, but in my actual ACC account screen it appeared under the name Standard Cover.
You can also choose to join a higher-level plan called Cover Plus Extra for an additional fee.
Also known as CPX, this plan is available to anyone with an ACC number. For more details, please see the ACC page “Cover Plus Extra (CPX).”
🔗ACC - CoverPlus Extra (CPX)
Fortunately, I have never been in an accident, so I have not actually received any compensation from ACC.
However, I recommend checking for yourself what kind of coverage is included as insurance for unexpected situations, and making sure that your payments are up to date.
When You Need to Pay the ACC Levy
The ACC Levy, which is the tax for the accident compensation system is billed once a year at a fixed time, and payment is completed online.
When do you pay ACC in New Zealand?
In my case, before receiving the ACC invoice, I first got a notification email in late August reminding me that it was time to pay ACC again this year.
The pre-notification email includes information such as when the ACC payment will be billed for the year, whether there are any changes in your account details, and the amount of income that has been reported.
Because of this, it is very helpful in allowing you to predict the timing and approximate amount of your ACC payment.
In my case, the email stated that the invoice would arrive around September 17, and in fact the invoice was delivered by email exactly on September 17.
The payment deadline was October 23, so there was a little over one month to prepare for payment. I completed the online payment the day after receiving the invoice.
When paying online, the invoice includes the account name, account number, payee code, and reference number. By entering this information, you can transfer the payment from your bank account.
The account name and account number remain the same each year, so I have registered them in my business account’s payee list.
However, the payee code and reference number change every year, so it is important to check the invoice details carefully before making your payment.
How Much Does ACC Cost?
The amount you pay to ACC can be estimated using the “Estimate your levy” page on the ACC website. It is clearly stated that the information you enter will not be saved, so you can use the tool with confidence.
🔗ACC Estimate your levy https://www.acc.co.nz/for-business/received-an-invoice/estimate-your-levy
In New Zealand, there is an industry code called CU (Classification Unit), which is used to calculate the amount of ACC levies.
The CU is listed on your ACC invoice, and you will also have selected it yourself when obtaining your NZBN (New Zealand Business Number).
You can search for your CU or industry classification number on the Business Industry Classification Code website.
BICC - Find your Business Industry Classification Code
When I compared the estimated amount calculated on the “Estimate your levy” page using my CU and the income amount listed on my ACC invoice with the actual levy billed by ACC, the invoiced amount turned out to be slightly lower than the estimate.
The difference was just over 20 dollars, which shows that the estimate is quite accurate.
If you would like to know your ACC amount in advance, I highly recommend using the estimate tool on the ACC website and preparing your funds for ACC payments in a planned way.
Working Safely as a Self-Employed Professional in New Zealand
New Zealand is known as one of the easiest countries in the world to start a business. Becoming a freelancer is very simple, but in order to continue working long-term, knowledge about insurance and taxes, as well as preparing for unexpected situations, is essential.
As of 2025, New Zealand has been strongly affected by the recession, with many people losing jobs and facing a very tough job market.
The accident compensation system introduced in this article only covers injuries caused by accidents. That is why, as a self-employed person, it is important to have risk management strategies, multiple options, and additional insurance in place.
Although tax and insurance information may seem complicated, most New Zealand websites provide clear explanations.
I recommend checking these resources regularly to make sure you have the latest information.
At my own pace, but with responsibility for my life, I will continue to run my business LITTLE FUJI and work hard as a freelance designer living in New Zealand (/・ω・)/
Comments