ACC motoring levies held by Government
The Government has knocked back a proposed increase in ACC motoring levies.
Prime Minister Jacinda Ardern and ACC Minister Iain Lees-Galloway said the Government had decided to keep the average motor vehicle levy, which is raised from annual car registration fees and a levy on petrol, at $113.94 a year.
ACC had proposed increasing the levy to $127.68 through an increase in the car rego levy, after Lees-Galloway earlier signalled no appetite for pushing up petrol prices. The Government has also decided to do away with a scheme under which it is cheaper to register cars that have a higher safety rating, and more expensive to register cars that are deemed less safe. Lees-Galloway said the socalled Vehicle Risk Rating programme was ineffective, hurt people on lower incomes and would end.
‘‘There is no evidence that variable levies based on VRR contribute to injury prevention or encourage the purchase of cars with higher safety ratings,’’ he said. ‘‘It also loads more of the burden on to low-income people and families, as they are generally less able to buy cars with the best safety ratings.’’
Ardern and Lees-Galloway said they had decided to reduce the ACC Work Levy in a move that will save New Zealand businesses $100 million over the next two years. The average work levies paid by employers and selfemployed people will decrease from 72 cents to 67 cents per $100 of liable earnings.
All other ACC levies would be held at their current rate.
Ardern said the Government was determined to ensure Kiwis were not being charged more without reasonable cause, while lifting wages.
‘‘We have done just that and concluded that the levies would not increase, and actually decrease for work levies paid by employers and self-employed people. This will save businesses and their customers around $100 million over the next two years compared to current rates.’’
The Government had been guided by advice from the Ministry of Business, Innovation and Employment and the Treasury in making the decision, she said.
‘‘This Government is committed to keeping ACC levies fair for businesses, workers and motorists, and no higher than needed to meet the real costs of injury claims.’’