Data reveals progress in ACC performance after new Turnaround Plan
Return-to-work rates in New Zealand had improved by January 2026, according to the latest data from the Accident Compensation Corporation (ACC), which is under a new Turnaround Plan that aims to improve performance at the agencys.
More ACC clients returned to work within 28 days (35.7%), rising to 60.9% within 10 weeks and 88.8% within nine months.
ACC clients returning to work after at least a year also went up to 91.7%, according to the report.
These improving return-to-work rates demonstrate how well the ACC is supporting its clients to return to work or independence.
"Early support improves rehabilitation outcomes," the ACC report read.
The improvements come as the ACC sets return-to-work targets under a Turnaround Plan aimed at improving performance for the organisation and delivering better outcomes for injured New Zealanders.
The plan aims for 37% of clients to return to work or independence within 28 days by 2026.
In the same year, ACC also targets return-to-work rates of 63% within 10 weeks, 91% within nine months and 92% within at least a year.
ACC's Turnaround Plan
The ACC developed the Turnaround Plan in response to a recent Letter of Expectations from the government that called on the agency to improve its performance.
Among the challenges that the ACC faced were people taking longer to return to work and independence, leaving them reliant on the scheme in the long term.
Over the last decade, the average time clients receive income compensation went up to 74.7 days, while the number of clients accessing income compensation for more than a year increased by 114%.
The growth was driven largely by people with non-serious injuries, such as sprains and fractures, which the ACC said usually should not need long-term support.
"Accessing support for longer than necessary isn't good for people, their families, and the wider community," the ACC said in its Turnaround Plan.
"Long-term disengagement from the workforce negatively impacts people's wellbeing, along with New Zealand's productivity and economic growth."
It's also leading to increased costs for the ACC, with the agency spending $2.9 billion on weekly compensation, accounting for 26% of its estimated future liability.
Gains from Turnaround Plan
The faster return-to-work rates are just one of the positive outcomes from the Turnaround Plan.
In its January report, there was a reduction in Long-Term Claims Pool growth to 1.8%, the lowest in a decade.
Year-to-date claim costs were also $4.9 billion, about $251 million lower than the budget.
"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," said ACC Chief Executive Megan Main in a statement.
ACC Minister Scott Thompson also acknowledged the ACC's progress.
"There's plenty more work ahead. But today's results are a strong indication New Zealanders will get the support they'd expect from ACC when they need it most," Thompson said in a statement.
"It's just one way this Government is fixing the basics and building the future."
