If you are starting a business in New Zealand, ACC helps protect you if you are injured and cannot work. If you are self-employed or a contractor, ACC usually puts you on standard CoverPlus automatically. This can pay weekly compensation based on your taxable income from the most recently completed financial year.
For some new business owners, that may not give the right result. For example, your income may change a lot, your business may still earn money while you are off work, or you may not have an income history until your first tax return if filed. An then your income may be low as you build your business, not reflecting the use of saving to live off while you build your business.
ACC CoverPlus Extra is a good option for self-employed people and non-PAYE shareholder-employees. It lets you nominate a level of compensation in the event of an accident. If your claim is accepted, you receive 100% of that agreed amount, less tax, after a seven-day stand-down period. A key benefit is certainty: you do not need to prove lost earnings when you make a claim.
CoverPlus Extra may suit you if you are new to business, your income goes up and down, or your personal taxable income does not show what the business really earns. It can also help if you want to know exactly what ACC would pay if an accident stopped you working.
If you have any questions, or would like advice, please contact our team today.
