New Zealand’s Accident Compensation Corporation (ACC) is reporting slower growth in long-term claims and improved early return-to-work outcomes as it rolls out a multi-year Turnaround Plan focused on claims management, rehabilitation performance, and scheme costs. The Turnaround Plan, released in January 2026, follows an independent Finity review of ACC’s claims management and rehabilitation performance and an updated Letter of Expectation from Minister for ACC Scott Simpson. It also responds to a board-commissioned review into organisational culture and a Treasury-commissioned review of ACC’s investment function.
ACC board chair Jan Dawson said the plan outlines how the organisation will work towards new performance targets through three priority areas:
“The board acknowledges ACC’s performance needs to improve. While some challenges are outside ACC’s control – including inflation, pressures in the wider health system, and court decisions expanding the scheme’s scope – many can be addressed through operational action. The board is committed to delivering on the minister’s expectations to turn around performance and will drive ACC to deliver better outcomes for injured New Zealanders,” Dawson said. Alongside the Turnaround Plan, ACC has released a new strategy, Statement of Intent, and Service Agreement, which set out ACC’s performance objectives over the next four years.
From early 2026, ACC began publishing monthly Turnaround Plan progress reports, with the first report (covering January) released in late February and the second (covering February) published on March 31. The reports are scheduled for release on the last business day of each month and are available via ACC’s resources page. The monthly updates track progress against a set of indicators, including the long-term claims pool (LTCP), early return-to-work rates, and scheme cost trends. ACC defines the LTCP as the number of clients receiving weekly compensation for more than one year.
In the January report, LTCP growth was 1.8%, compared with 14.5% in January 2025, which ACC described as the lowest level in a decade. Year-to-date claim costs were reported at $4.9 billion, or $251 million below budget, and 60.9% of clients on weekly compensation had returned to work or independence within 10 weeks by Jan. 31, the highest proportion since the 2023/24 period. Chief executive Megan Main said the monthly reporting will track progress against the Turnaround Plan priorities and make performance data available to stakeholders. “January’s report is encouraging and reflects several months of performance improvements and the sustained efforts of teams across ACC, which we’ll continue to build on,” Main said.
The February Turnaround Plan report includes updated data on long-term claims and early return-to-work outcomes. Return-to-work rates improved across all durations in February. For clients receiving weekly compensation, 61.3% had returned to work or independence within 10 weeks, up from 59.8% in February 2025. The LTCP growth rate was 0.8% at the end of February, which ACC reported as the lowest rate in more than a decade.
ACC has stated it is focusing on long-term clients with less serious injuries, such as sprains and strains, to support a shift back to independence where appropriate. ACC is also projecting savings in social rehabilitation spending, an expenditure area that has experienced strong growth over the past 10 years. “We’re focused on supporting injured New Zealanders return to work and independence faster. These results reflect a significant amount of work across ACC, and from our partners, and means injured New Zealanders are getting the right level of support, at the right time,” Main said.
Main has described the Turnaround Plan as relating both to rehabilitation performance and to the long-term affordability of the no-fault scheme. She said ACC spent $8.1 billion on rehabilitation, treatment, and compensation last year, up from $4.9 billion a decade earlier, an increase of around 65%. “Ensuring the scheme remains affordable and is able to support future generations is of the utmost importance. While we have done a significant amount of work already, which has led to improvements in rehabilitation performance, there is more to do,” she said.
Main added: “This work isn’t about taking away the support people receive from ACC to recover from their covered injuries. It’s about ensuring injured people get the right level of support, at the right time. This includes supporting long-term clients with less serious injuries back to independence (including back to work where this is practical), working in partnership with health providers to improve client outcomes, and ensuring people are getting the right level of support that reflects their current needs. Staying reliant on the scheme longer than necessary has negative impacts for our clients, their whānau, community, and employer. It also puts pressure on the ACC scheme.”
ACC’s leadership has stated that the Turnaround Plan relies on cooperation across the system, including health providers, employers, and injured people. “We need support from the health sector, from providers, from employer, and from all New Zealanders, to get injured people better faster and ensure we protect the ACC scheme for the long term. We know that a well-supported return-to-work programme, and staying active and socially connected while recovering, help people recover faster,” Main said.
Main has also called for broader engagement in injury prevention and recovery participation. “It’s important to remember that we cannot do this alone. I’m asking all New Zealanders to play their part by keeping themselves and their communities safe and by playing an active role in their recovery,” she said. The Turnaround Plan and monthly reporting outline ACC’s current focus on early intervention, long-duration claims, and rehabilitation costs within existing scheme settings. Observers can expect continued public reporting on performance indicators as ACC reports against the board’s targets over the next four years.
