New Zealand’s Accident Compensation Corporation (ACC) has released additional documents explaining how it developed its 2025-26 Turnaround Plan, providing further detail on its response to an external performance review and ministerial direction. The Turnaround Plan was made public in January 2026. On May 4, ACC released internal papers and correspondence produced during the plan’s development, together with advice from the Ministry of Business, Innovation, and Employment (MBIE) and a quality assurance letter from Finity Consulting.
The material sets out how the plan was constructed, including analysis presented to the ACC board, options considered, and how expectations from the Minister for ACC were reflected in the final framework. The Turnaround Plan is presented as ACC’s response to an external review by Finity Consulting, commissioned by the minister following levy decisions in December 2024. It also draws on a board‑commissioned organisational culture review and a Treasury‑commissioned review of ACC’s investment function.
According to ACC, the Turnaround Plan is organised around three priority areas designed to connect operational performance with the long-term sustainability of the Accident Compensation Scheme:
Board chair Jan Dawson said the board recognised the need for improved results. “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.
ACC’s documents point to rising rehabilitation and treatment expenditure and growth in the long-term claims pool as key drivers of financial pressure on the fully funded scheme. The corporation estimates its outstanding claims liability at about $63.6 billion, compared with assets of around $53.8 billion set aside to meet those future costs. If current trends continue, ACC forecasts a significant funding gap by 2030. The new performance targets linked to the Turnaround Plan are expected to be reflected in ACC’s revised 2025-26 service agreement and its 2026-2030 statement of intent. ACC has said it will report monthly on progress, with oversight from the board and the Minister.
The Turnaround Plan sets out actions under the three priority headings, with a strong focus on claims management, decision-making processes, and engagement with providers. Under the “putting clients first” priority, ACC plans to:
The plan notes that annual social rehabilitation spending has increased from about $514 million to $1.4 billion over the past decade and is now the largest contributor to ACC’s projected future liability. Elective surgery costs have also increased, with spending of $671 million last year and an increase of around 35% over the past two years. A growing share of clients who receive elective surgery then move on to weekly compensation. ACC states that, where support is provided, decisions must remain consistent with legislative settings, including requirements that services are necessary, appropriate, and directly related to covered injuries.
The “getting New Zealanders back to work and independence” priority addresses growth in the long-term claims pool and longer average durations on weekly compensation. Over the past decade, the number of people receiving income compensation for more than a year has roughly doubled, with much of the increase coming from clients with non-serious injuries such as sprains and fractures. Planned actions include hiring additional claims management staff, improving triage and allocation of claims, introducing a 28‑day check‑in for clients identified as being at risk of delayed recovery, using analytics and clinical triage to identify clients at risk of entering the long-term pool, and strengthening links with employers and health providers to support earlier return to work.
The third priority, “resetting ACC and getting the organisation back to basics,” reflects recommendations from the Finity performance review and ACC’s internal culture review. Measures outlined in this section include redesigning ACC’s operating model to support long-term financial sustainability, developing a new corporate strategy and updated organisational values, reviewing leadership and governance structures, and establishing a corporation‑wide culture change programme. ACC also plans to respond to recommendations from the Treasury-commissioned review of its investment function and to review its hybrid working policy, recruitment approach, and performance development framework. ACC has said it will strengthen internal monitoring and reporting to support decisions about outcomes and costs and will look for ways to limit growth in operating expenses while maintaining its ability to manage claims.
