ACC Updates New Zealand’s 2025: Compensation, Levies, and Claims
New Zealand’s Accident Compensation Corporation (ACC) supports people injured in accidents, covering medical costs and lost income. In 2025, ACC introduced updates to compensation rates, levies, and the claims process. These changes affect claimants, businesses, and motorcyclists. This guide explains the updates, their impact, and how to navigate them, ensuring you get the support you need.
Why These Updates Matter
ACC’s no-fault scheme covers everyone in New Zealand, from workers to visitors, for injuries like sprains or heart conditions. The 2025 updates increase payments to help claimants recover. Higher levies fund this support but raise business costs. A stricter claims process may require more effort to secure help. These changes balance care for people with financial sustainability.
Compensation Rate Changes
ACC pays weekly compensation at 80% of pre-injury earnings, with minimum and maximum limits. In 2025, rates increase to reflect rising costs.
What Changed?
- 1 April 2025: Minimum weekly compensation for full-time earners rises to $752.00, based on 80% of the adult minimum wage ($940.00 for a 40-hour week).
- 1 July 2025:
- Weekly compensation for claimants over 26 weeks increases by 2.89%, with a maximum of $2,418.55 per week.
- Non-taxable entitlements (e.g., Independence Allowance, Lump Sums) rise by 2.53%.
- Grants and allowances:
- Funeral grants: $7,990.30
- Survivor’s grants: $8,566.62 for a partner, $4,283.32 per child under 18 or dependent
- Weekly childcare payments: $182.17 for one child, $109.30 each for two, $255.03 total for three or more
- Interest on overdue payments: 5.78% per annum, down from 6.967%.
How It Affects Claimants
- Higher payments help cover living costs for injured people.
- The minimum rate ensures low earners get fair support.
- Grants support families dealing with loss or childcare needs.
Examples
| Pre-Injury Weekly Earnings | Old Payment (2024) | New Payment (1 July 2025) | Increase |
|---|---|---|---|
| $940 (minimum wage, 40 hours) | $752.00 (minimum) | $752.00 (minimum) | $0 |
| $2,000 | $1,600.00 | $1,646.24 (2.89% increase) | $46.24 |
| $3,500 | $2,350.62 (max) | $2,418.55 (max) | $67.93 |
Tips
- Check your payment rate on MyACC: MyACC.
- Report income changes to avoid payment errors.
- Contact ACC at 0800 101 996 for payment questions.
ACC Levy Updates for 2025/26
ACC levies fund injury support. In 2025/26, rates increase, and classifications adjust based on industry risk profiles.
What Changed?
- Levy Rates (GST-exclusive):
- Motor Vehicle levy: $122.84 per vehicle (up 7.8% from $113.94).
- Earners’ levy: $1.45 per $100 of liable earnings (up 4.3% from $1.39).
- Work levy: $0.66 per $100 of liable earnings (up 4.8% from $0.63).
- Liable Earnings:
- Maximum: $152,790 (up from $142,283).
- Minimum: $49,365 (up from $44,250).
- Other Changes:
- Fleet Saver programme closes for new entries from 1 July 2025, fully by 30 June 2029.
- Interest rates for payment plans align with the Floating First Mortgage New Customer Housing Rate.
- From 1 July 2026, riders completing an advanced safety course get a 25% levy discount.
Industry-Specific Impacts
- High-risk industries (e.g., construction) may see larger levy increases due to higher claim costs.
- Low-risk sectors (e.g., office-based businesses) may face smaller hikes or reductions.
- Businesses receive specific rates based on their classification unit when invoiced.
Examples
| Business Type | 2024/25 Work Levy | 2025/26 Work Levy | Impact |
|---|---|---|---|
| Construction | $1.20 per $100 | $1.30 per $100 (est.) | +$0.10 |
| Office Services | $0.30 per $100 | $0.28 per $100 (est.) | -$0.02 |
Note: Rates vary by classification; check your invoice or ACC’s calculator.
Tips
- Use Facet: Use ACC’s levy calculator: ACC Levy Calculator.
- Review your invoice for your specific rate.
- Contact ACC at 0800 222 027 for industry-specific levy details.
- Sole traders should set aside funds for annual levies, as advised by Hnry.
Navigating the Claims Process
ACC’s claims process ensures fair support but may feel stricter in 2025 due to increased scrutiny. Submitting a strong claim is key to quick approval.
What to Know
- ACC covers injuries from accidents, including sprains, fractures, or serious conditions like heart failure.
- Claims must be filed within 12 months, ideally sooner, via a doctor or health provider.
- A stricter process may require detailed medical evidence and follow-ups.
Tips for a Strong Claim
- Submit Promptly: File within days of the injury to avoid delays.
- Provide Evidence: Include doctor’s reports, injury details, and treatment records.
- Use MyACC: Track claims and update information online.
- Keep Records: Document all medical visits and costs.
- Follow Up: Contact ACC if delays occur or more information is needed.
Example
- John sprains his ankle at work. He visits a doctor, who files an ACC claim. John submits medical reports and tracks progress via MyACC. His claim is approved in two weeks, receiving $752.00 weekly if unable to work.
Tips
- Learn more about claims: ACC Injuries We Cover.
- Seek help from Community Law for disputes: Community Law.
- Use ACC’s support services for guidance: 0800 101 996.
Why This Matters
Higher compensation rates mean better financial support for injured people, especially those with long-term needs. Levy increases may raise business costs, but the rider discount promotes safety. A thorough claims process ensures fair outcomes but requires careful preparation.
Next Steps
- Check payment updates on ACC’s Newsroom.
- Businesses should review levy invoices or contact ACC for specific rates.
- File claims early with complete documentation to avoid delays.
- Share this guide on social media to help others stay informed.
Final Thoughts
ACC’s 2025 updates strengthen support for injured New Zealanders while adjusting levies to fund the scheme. Claimants benefit from higher payments, businesses face varied costs, and a careful claims process ensures fairness. Stay proactive to make the most of these changes or you can contact us for better understanding.