If you are self-employed and need time off work to recover from an injury, lost earnings compensation can help with your loss of income. The type of cover you have and your income determines what your payments will be. We use your income from your last self-employed tax return to calculate your lost earnings compensation. If you have not yet submitted a tax return we may still be able to help.
How we calculate your lost earnings compensation
ACC can help with compensation for your loss of earnings while recovering. The amount of lost earnings compensation we pay depends on your individual circumstances. The amount you receive each week depends on:
- the type of cover you have with ACC
- the amount of income that you earn.
No compensation for the first week
There is no lost earnings compensation for your first week off work. Employers are required to pay sick leave for the first week. As you are self-employed, you must cover your own sick leave for your first week off.
The type of cover you have determines how much you receive
After your first week, the amount of compensation you receive depends on the type of cover you have.
- ACC CoverPlus – you receive up to 80% of your earnings (based on your taxable income declared on your IR3 return for the most recently completed financial year).
- ACC CoverPlus Extra – you receive 100% of the earnings you have agreed with ACC within the minimum and maximum earning levels.
When you have not yet submitted a self-employed tax return
If you have not yet submitted a self-employed tax return we cannot determine your income. Different conditions apply for:
- full-time newly self-employed
- part-time newly self-employed.
Full-time newly self-employed
When you are newly self-employed and work full-time (over 30 hours per week) and have not lodged an IR3 tax return you may be entitled to $384.00 per week.
Note: This amount may be updated each year to keep up with the cost of living.
Part-time newly self-employed
If you are newly self-employed and work part-time you may not be eligible for weekly compensation. You are considered part-time if you work less than 30 hours per week.
In your first year under ACC CoverPlus you may not be able to claim for lost earnings compensation if you can’t prove your income. You can still get help with treatment costs, medical fees, and other support for your injury.
Mixed income: Self-employed and employee
If you were both an employee and self-employed in the previous year, your mixed income can be taken into consideration when determining any lost earning compensation. If you were an employee in the last 12 months, prior to your change to self-employment, we consider both income sources. ACC can take all earnings from the 52 weeks before your injury into account, including:
- employed work
- self-employed work
- lost earnings compensation.
ACC CoverPlus Extra: Pre-approve your weekly compensation
You might find that ACC CoverPlus Extra is better for you as you can nominate how much lost earnings compensation you will receive if you are injured.
Last updated: 15 December 2008