Welcome to McLean and Co., Chartered Accountants

ACC COVERPLUS EXTRA

ACC CoverPlus Extra is an alternative to our standard ACC CoverPlus personal injury cover.

It will give you a guaranteed level of weekly compensation, agreed in advance with ACC, if you are unable to work as the result of an injury.

It is recommended that you consider this cover rather than ACC CoverPlus if:

	Your income varies from year to year
	You have not been self-employed for long
	You can continue to receive business income after injury
	You want a guaranteed level of compensation
	You are in a partnership
	You are a non-PAYE shareholder-employee

WHAT ARE THE BENEFITS?

	You can tailor the level of cover to suit your own personal circumstances.
	If you make a claim, there is no need to prove your earnings, as the weekly compensation will already have been agreed.
	You’ll receive 100% of the amount of weekly compensation purchased until you are fit for full-time work.

HOW MUCH DOES IT COST?

ACC CoverPlus Extra levies are calculated much the same as ACC Cover Plus Levies. In addition, they reflect:

	The differences in rates between your normal entitlement and the nominated weekly compensation
	Your age

WHAT WILL I GET?

These amounts are for the 2005/06 levy year, and are subject to changes due to indexation each year.

	The minimum level of weekly compensation that you can nominate is $14,976 each year
	The maximum level of weekly compensation that you can nominate is $75,381 each year.

SELF EMPLOYED PERSONS

To calculate levies and weekly compensation entitlements,self-employed people are classified into three groups:

	Established in self-employment – means you have passed more than one balance date (last day in the tax year)
	Recently self-employed – means you have passed only one balance date and therefore may not have an entire year of liable earnings
	Newly self-employed – means you have not been in self-employment long enough to lodge a tax return with Inland Revenue.

The amount of weekly compensation you receive and levies you have to pay is determined by these classifications.

WANT TO PAY LESS FOR LOWER COMPENSATION?

ACC CoverPlus Extra also has a Lower Levels of Weekly Compensation option.

With this option you pay a lower levy in return for a level of weekly compensation that reduces the more hours you are able to work.

IN A PARTNERSHIP?

ACC CoverPlus Extra could be the right cover option for you as:

	Cover can be negotiated based on 100% of the partnership’s income rather than on a maximum of 80% of each individual’s income (provided all partners apply for CoverPlus Extra at the same time)
	Where one member of a partnership is a “passive earner” (with little involvement in the actual management or operation of the business), the other partner’s/partners’ level of cover can be negotiated to take into account the total partnership liable earnings.

If we can assist further, please email TotalAccounting as follows: