ACC for the Self-Employed

🛡️ CoverPlus and CoverPlus Extra

CoverPlus (the Standard)

Most self-employed people are on CoverPlus by default. If you are injured and cannot work, weekly compensation is based on your most recent year's earnings. It is simple, but if your income has dropped or is irregular, the payout might not reflect what you currently earn.

CoverPlus Extra (the Option)

CoverPlus Extra lets you agree a specific level of cover with ACC in advance. Your weekly compensation is then based on that agreed amount, regardless of what your income did, which can give certainty.

🧮 How Levies Are Worked Out

What Drives Your Levy

Your ACC levies as a self-employed person are based mainly on two things: how much you earn, and the classification of your work, which reflects how risky it is. Higher-risk occupations pay a higher rate.

When You Pay

ACC usually invoices self-employed levies after your income is known for the year. That means a levy bill can arrive some months after you have earned the income, so it is wise to set money aside rather than be caught out.

Make Sure Your Classification Is Right

If ACC has you under the wrong occupation classification, you could be paying a higher rate than your actual work warrants. It pays to check that your classification matches what you really do.

💡 Planning and Common Mistakes

Common Mistakes

Mistake 1: Not Budgeting for the Levy

Because the bill can arrive after the income year, an unplanned levy invoice can hurt cash flow. Set money aside as you earn.

Mistake 2: Assuming the Default Payout Is Enough

If your income is variable or you pay yourself little, CoverPlus may pay less than you would want after an injury. Review whether CoverPlus Extra suits you.

Mistake 3: Wrong Occupation Classification

Being classified as higher-risk than your work actually is means paying more than necessary. Check it.

Mistake 4: Forgetting You Are the Safety Net

Without an employer or sick leave, an injury can stop your income. Knowing your ACC cover, and any private income protection, matters more for the self-employed.

A Simple Plan

See our ACC Levies and self-employed material for more, and the NZ ACC Levy Rates reference for current figures. Final word: ACC covers the self-employed, but you pay the levies yourself and the cover depends on the option you choose. Check your classification, pick the cover that fits your income, and budget for the levy. This is general information, not advice; talk to ACC or an adviser about your own cover.