ACC CoverPlus Extra: is it worth it?

ACC CoverPlus Extra (CPX) lets you agree your ACC income cover in advance, instead of ACC working it out from your past earnings after you’re hurt. If you’ve recently gone from being an employee to working for yourself, or had a quiet year due to a downturn, it’s worth a look (especially if you do physical work where injury rates are higher). Standard ACC can pay far less than you would usually earn.

This guide explains what standard cover would pay you, why the first year or two is where the gap shows up, and how CoverPlus Extra works, what it costs and who can get it.

ACC’s CoverPlus Extra page explains it in more detail, including how to apply.

What does standard ACC cover pay if you’re self-employed?

Generally up to 80% of your earnings before the injury, before tax, worked out from your tax returns. If you’re a self-employed sole trader or partner, you’re covered by ACC’s standard cover (CoverPlus) automatically. Shareholder-employees who aren’t paid through PAYE have their own standard cover through their company.

Because the figure comes from your tax returns, ACC looks backwards, not at what you earn now, which creates a timing gap. Limits and conditions apply, and payments can be reduced if the business keeps earning or you go back to work part-time.

How does the timing gap occur?

Until you’ve filed a tax return showing self-employed income, ACC has little to go on.

• Before your first tax year end: ACC uses any PAYE wages from the 52 weeks before the injury. Your self-employed earnings aren’t counted yet.
• After one tax year end: ACC uses that year’s declared earnings (plus any wages in the 52 weeks before the injury), which may only cover part of a year.
• No wages and no return yet: if you had no wages in those 52 weeks and don’t qualify for the full-time minimum, the payment can be nil.

A hypothetical example

Say you earned $50,000 a year as an employee, then went out on your own and are now on track for $100,000. Round numbers, before tax:

	Per week (before tax)
What you’re now earning ($100,000 a year)	about $1,900
Standard cover if hurt in your first year (80% of your old $50,000 wages)	about $770
CoverPlus Extra with agreed cover of $65,000	$1,250

The example ignores tax, ACC’s limits and the full-time minimum. Your own figures will be different.

How is CoverPlus Extra different?

You agree the cover amount up front, and ACC pays 100% of it if you’re injured. In more detail:

• You apply, ACC does a financial assessment, and the cover starts when you accept ACC’s offer. It has to be in place before any accident.
• For 2026/27 the agreed amount can be anywhere from $40,401 to $125,313 a year. These limits change each year.
• If you’re injured, ACC pays 100% of the agreed amount (before tax), as weekly payments, until you’re no longer incapacitated.
• That payment doesn’t drop if the business keeps earning or you partly return to work. A cheaper option, Lower Level of Weekly Compensation (LLWC), does reduce it in those cases.
• Both types of cover have a seven-day wait before weekly compensation starts.

	CoverPlus (standard)	CoverPlus Extra
How weekly pay is worked out	Up to 80% of past earnings	100% of an agreed amount, set in advance
When to arrange it	Automatic	Before any accident
If the business keeps earning	Can be reduced	Stays the same (unless you choose LLWC)
Levy	Based on actual earnings	Based on the agreed amount, at a higher rate
Other entitlements	The same under both: treatment and surgery costs, home help, lump sums for permanent impairment, and support for dependants

What does CoverPlus Extra cost?

More than standard cover for the same amount of cover, because CPX levies are charged at higher rates. They’re based on your agreed cover amount rather than your actual earnings, and the rate depends on your industry classification.

ACC invoices you once you accept the offer, then each April, and policies roll over automatically on 31 March. You need to pay by the due date or the policy can be cancelled. For an estimate, use ACC’s levy calculators.

Who can get CoverPlus Extra?

Self-employed people, and shareholder-employees who aren’t paid through PAYE, who are filing ACC liable income.

• If you work more than 30 hours a week on average, you can apply.
• If you work 30 hours a week or less, you can only apply if you earn above the CPX minimum, and you must take full compensation (not LLWC).
• If you’re on an ACC claim and not working, you may not be eligible yet.

Full details are at acc.co.nz/cpx.

So is CoverPlus Extra worth it?

My view: If it fits the budget, it’s worth a look for at least your first two years of trading, until there’s a full year of self-employed earnings on record. At the very least set the agreed cover at your household’s comfortable minimum, at the amount you’d need to keep the bills paid, rather than the most you could get (though it can’t go below ACC’s minimum).

I pay for CoverPlus Extra myself while my self-employed income builds up, set at a comfortable minimum for my family. My work is desk-based, and while I could often keep working after an injury, I think it’s worth the conservative approach. If you’re on the tools, an injury is more likely to stop work completely, so the cover matters more.

What should you know before you apply?

• Timing matters. Cover only applies once you’ve accepted ACC’s offer, so it can’t be arranged after an accident.
• Have your figures ready. ACC may ask for financial documents if the cover you want is higher than your current earnings.
• Check it each March. ACC sends a renewal letter in March for CPX. If you chose the minimum, it updates to the new minimum automatically; if you chose the maximum, you need to increase it yourself. Changes need to be in on time to apply for the whole year.
• Revisit it once your income settles. When there’s a full year or two of self-employed earnings on record, compare what standard cover would pay with what CPX costs.

Does ACC cover illness?

No. ACC covers accidents, not illness. Income protection insurance is a separate thing, and worth a conversation with an insurance adviser or broker. If you don’t already have one, I can suggest one.

Where can you find out more?

• ACC’s CoverPlus Extra page and levy calculators, or call ACC on 0800 222 776.
• The ACC section of my guide to starting a business in New Zealand, which covers the levies you’ll pay as a new business.
• How I work with tradies and contractors and small businesses, or get in touch.

This guide is general information, current as at 21 October 2026 (2026/27 ACC levy year; sources: acc.co.nz, including ACC’s product comparison ACC4575, correct as at 1 September 2026). It isn’t advice for your particular situation, and levies, cover limits and rules change each year. Nothing here is a recommendation of any insurance or financial product. Talk to me, or to ACC, before you act on any of it.