Warning over major danger at Aussie-favourite travel hotspot: 'Think twice'
It's one of our closest allies, both geographically and strategically, and a hugely popular travel hotspot among Australians. But, experts are warning that travelling to New Zealand could come with an unexpected and "little-known" consequence should you become injured while you're there.
Director of Carter Capner Law, Peter Carter, said unlike Australia, and "most other developed countries", people holidaying in New Zealand can't access compensation for injuries even if the accident is the fault of someone else.
Speaking to Yahoo News, Carter described the nation as a "liability-free zone" for foreigners. He said "if you get injured, you're better off staying there" and never leaving. "They've got no recourse against the careless or reckless person that causes their injury," Carter told Yahoo.
It's all to do with New Zealand's Accident Compensation Corporation (ACC) scheme, which is a unique no-fault compensation system that has been in place since the 1970s. Under this system, injured individuals—regardless of how or where the injury occurred—are covered by ACC, which provides financial support for medical treatment, rehabilitation, and lost wages.
However, in exchange for this universal coverage, people cannot sue for personal injury compensation, even if their injury was caused by someone else's recklessness or negligence.
Carter said it means legal action for damages against individuals or their insurers is prohibited.
"[This includes] road accidents, recreational accidents, light aircraft accidents, any type of accident you can think of, where someone makes a mistake and someone is careless," he said. "No one thinks that serious injury is going to happen to them, but they should. They really need to think twice."
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Carter cited the example of a Queensland woman who suffered serious spinal injuries when a speeding car crossed on to the wrong side of the road and collided with her head-on. She fought the New Zealand legal system for eight years but ultimately lost.
"Australia's health system will cover you for some medical expenses on your return but you are on your own if you can't return to full time work," he said, urging all travellers to New Zealand to take out income protection insurance before they travel.
"But even that has some limitations as well," Carter said.
While New Zealand's ACC covers treatment costs, it does not compensate for emotional distress, ongoing pain, or punitive damages. For Australians used to the option of suing for significant payouts in personal injury cases, this can be a major adjustment.
More than one million Australians visited New Zealand in 2024.
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