Improved car safety lowers rego
"They're trying to make it look like they're reducing levies, but it's off a high base." Sue Moroney, Labour ACC spokeswoman
Cheaper ACC levies for motorists has been welcomed by the Automobile Association.
‘‘It’s great to see vehicle safety being highlighted and people being rewarded for driving safer cars,’’ AA motoring services general manager Stella Stocks said.
But Labour’s ACC spokeswoman, Sue Moroney, said it was a political move before election year.
‘‘It’s a bit rich from a Government that hiked up ACC fees and kept them higher for longer than they needed to be. Now they’re trying to make it look like they’re reducing levies, but it’s off a high base,’’ Moroney said.
Average annual motor vehicle ACC levies will reduce 12.5 per cent from $130.26 to $113.94 next year, and the petrol levy will reduce from 6.9 cents to 6c.
But the actual effect on individual car registrations will vary widely because the annual fee for new, safer cars is about $85, while older vehicles attract registration fees well above $200.
For example, the 2016 annual registration for a 2010 car is $85.59, which includes the current ACC levy of $25.54, administration fees of $5.38 and GST.
After July 2017 the annual registration cost should reflect the 12.5 per cent reduction of the $25.54 ACC component, plus the reduced petrol levy.
ACC levies for electric cars have been reduced from $86.50 to $18 to incentivise people to buy battery-powered cars.
Annual registration for motorcycles will remain the same, but motorcyclists will benefit from the reduced petrol levy, acting ACC Minister Nathan Guy said.
Average work levies paid by employers and self-employed people will reduce from 80c to 72c per $100 of income.
The earners’ levy remains unchanged. The Government decided not to implement ACC’S recommended 4c increase to the earners’ levy, which is paid by everyone in the workforce to cover out-of-work injuries, Guy said.
‘‘The cuts have been made possible by the improved financial management of ACC under our watch.’’
The total reductions to ACC will be $126.2 million a year.