How injury cover differs across the Tasman — and what it means for employers
New Zealand runs a single no-fault scheme, ACC, that covers all personal injury — at work or not — for everyone, and in return you generally cannot sue for personal injury. Australia has separate workers' compensation schemes in each state and territory plus Commonwealth schemes, covering work-related injury only, often with some retained right to sue at common law. If you employ in both countries, the arrangements are fundamentally different.
A single, national, no-fault scheme that covers everyone for all personal injury.
The Accident Compensation Corporation administers New Zealand's scheme under the Accident Compensation Act 2001. Cover is provided on a no-fault basis for personal injury wherever it happens — at work, on the road, at home or at play — so an injured person does not have to prove anyone was negligent. Entitlements can include treatment and medical costs, rehabilitation, weekly compensation for lost earnings, and lump sums for permanent impairment. The scheme is funded by levies (including an employer levy for the work account), and in return the right to sue for compensatory damages for personal injury is largely removed.
Separate schemes by jurisdiction, covering work-related injury — often with common-law access retained.
Each of the eight states and territories runs its own workers' compensation scheme, and there are also Commonwealth schemes (for example for Australian Government employees). Cover is generally for work-related injury and disease on a no-fault basis, funded by employer premiums. Crucially, many Australian schemes retain some access to common-law damages — a worker may, in defined circumstances and often subject to an impairment threshold, sue an employer for negligence. The schemes differ from one another in funding, entitlements, return-to-work arrangements, common-law access and coverage.
| Feature | New Zealand (ACC) | Australia (workers' comp) |
|---|---|---|
| Structure | One national scheme | 8 state/territory schemes + Commonwealth schemes |
| What it covers | All personal injury, anywhere (work, home, road) | Work-related injury and disease |
| Fault basis | No-fault | No-fault (statutory), common-law access often retained |
| Right to sue | Largely removed for personal injury | Often retained, subject to thresholds |
| Funding | Levies | Premiums |
| Who you deal with | ACC | The scheme or insurer in each jurisdiction |
Schemes vary in detail and change over time. Source: Safe Work Australia comparison report; ACC.
New Zealand traded the right to sue for guaranteed, faster, no-fault cover.
The defining feature of ACC is that broad, no-fault cover comes in exchange for giving up the right to sue for personal injury. Australia's schemes are also no-fault for statutory benefits, but many keep a path to common-law damages open. For employers, that means the litigation exposure profile is quite different on each side of the Tasman.
You cannot run one injury-cover arrangement across both countries.
General information, not legal or financial advice. Injury-cover rules differ by country and by Australian jurisdiction and change over time. Confirm your obligations with ACC, the relevant Australian scheme, or a qualified adviser.
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ACC is a single national no-fault scheme that covers all personal injury, wherever it happens, for everyone in New Zealand. Australia has separate workers' compensation schemes in each jurisdiction that cover work-related injury, funded by premiums, and many retain some right to sue at common law.
In New Zealand, generally no — the right to sue for personal injury is largely removed in exchange for ACC cover. In Australia, many schemes retain access to common-law damages, often subject to an impairment threshold, so it can be possible in defined circumstances.
Yes. ACC covers personal injury wherever it occurs — at work, on the road, at home or elsewhere — which is a key difference from Australian workers' compensation, which generally covers work-related injury and disease.
Effectively, yes. You pay ACC levies in New Zealand and hold the appropriate workers' compensation in each Australian jurisdiction you operate in. ACC has no Australian equivalent, so the arrangements do not transfer.
No. Workers' compensation and ACC are about cover and compensation after an injury, while WHS and the HSWA are about preventing injury in the first place. They are related — better safety lowers claims and costs — but they are separate legal areas.
