Car reg­is­tra­tion prices set to fall

Matamata Chronicle - - News -

The cost of reg­is­ter­ing your car is set to fall in 2014, al­though driv­ers of newer safe ve­hi­cles will save much more than driv­ers of older cars.

ACC re­vealed its pro­pos­als for levy cuts for ve­hi­cles, as well as em­ployer and earner levies, for the 2014/15 fi­nan­cial year.

In most cases, ACC is propos­ing cuts, made pos­si­ble by its fi­nan­cial po­si­tion.

Un­der the pro­pos­als for light pas­sen­ger ve­hi­cles, which cov­ers cars, li­cence levies would drop by more than $92 a year for those with the high­est safety rat­ing, while the levy for the low­est safety rat­ing would fall by less than $10. The AA said most new ve­hi­cles would fall into the safest ‘‘risk rat­ing group 4’’ cat­e­gory.

The pro­pos­als are a mod­i­fi­ca­tion on that pro­posed ear­lier this year as part of a con­sul­ta­tion process, which ini­tially had fees for 560,000 cars re­main­ing the same, with the driv­ers of the safest cars sav­ing just over $100.

ACC chair­woman Paula Reb­stock said the feed­back the or­gan­i­sa­tion re­ceived on the pro­pos­als said that all mo­torists should ben­e­fit from its im­proved fi­nan­cial po­si­tion.

Driv­ers

of

mo­tor­cy­cles

and mopeds miss out, de­spite lob­by­ing ACC with claims that they sub­sidise other mo­torists, with the pro­pos­als sug­gest­ing fees be frozen.

The Au­to­mo­bile As­so­ci­a­tion (AA) has wel­comed the changes to in­tro­duce a safety com­po­nent to the fees. ‘‘We sup­port risk rat­ing pas­sen­ger ve­hi­cles which re­ally is around in­cen­tivis­ing mo­torists to choose the safest ve­hi­cle they can af­ford,’’ spokesman Mark Stock­dale said.

Work­ers would also get a sav­ing in the hand, with ACC propos­ing a cut of 15 per cent in earner levies, which cur­rently cost $1.70 for ev­ery $100 earned.

ACC has not pro­vided ex­am­ples on the prac­ti­cal ef­fect of the changes, al­though it would ap­pear to give another 25 cents for ev­ery $100 earned, or $127.50 for those earn­ing $50,000 a year.

Work levies – paid by em­ploy­ers on be­half of work­ers – are pro­posed to fall by 17 per cent.

Reb­stock said the rec­om­mended levy cuts had been made pos­si­ble by ACC’s im­proved fi­nan­cial sit­u­a­tion, with the scheme is on-track to hav­ing suf­fi­cient as­sets to meet its li­a­bil­i­ties by 2019.

‘‘ We’re not quite there yet. Al­though we achieved a sur­plus last year, the scheme’s li­a­bil­i­ties still ex­ceed its as­sets by $ 2.3 bil­lion.

‘‘But we’re con­fi­dent our rec­om­mended levy cuts are sus­tain­able.’’

The fi­nal de­ci­sion on levies rests with the Gov­ern­ment.

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