Safer cars, lower ACC levies?

Proposals by ACC to base levies for private motor vehicles on their safety ratings are a welcome move says Motor Trade Association (MTA).

Safety ratings would be based on a system, developed by Melbourne’s Monash University, that rates vehicles on how well they protect occupants from injury in a crash situation.

With significant improvements in active and passive safety systems in recent times, the safety profile of the national fleet now varies significantly.

Currently, private petrol-powered passenger vehicles are charged $198.65 in ACC levies, while diesel powered passenger vehicles are charged $321.59. The levies are charged as part of vehicle licensing fees. Lowering these will be a welcome move for many motorists.

The changes, proposed for the 2014/15 year, would mean the lowest risk rated petrol-powered passenger vehicles would face an ACC levy of $98.65, with diesel powered passenger vehicles in this group facing an ACC levy of $222.53.

MTA has previously submitted that cars with a better safety rating present less risk in event of a crash to occupants – and thus a lower cost, from an ACC perspective.

MTA General Manager Advocacy and Training Dougal Morrison says this is a positive move.

“We have long contended that cars are progressively getting safer and providing more protection for occupants, and this is likely to continue into the future,” he says. “This move is a good start, but the key will be ensuring that there are enough categories created and that they reflect the state of the fleet over time.”