ACC levy consult opens

Acting ACC Minister Nathan Guy has welcomed the start of ACC’s public levy consultation process.

Under the process, ACC will release proposed levy rates, and after considering feedback, the ACC board will recommend rates to the government, who will then make the final decision.

Guy says the consultation is “an opportunity for New Zealanders to share their views about levies and other aspects of the ACC scheme.”

As part of this year’s consultation, ACC will consult on a proposed reduction of $16.32 to the average motor vehicle levy, which includes the annual licence levy and petrol levy. The reduction will drop the levy to $113.94, down from the current $130.26.

The levy consultation also includes interim measures to reduce levies on electric vehicles, which will see the levy fall to $22 from $86 for many vehicles. ACC will consult on maintaining the motorcycle safety levy at $25.

“ACC’s proposed levy rates take into account the strong position of its levied accounts, but also the need to recognise trends around things like claims volumes and costs,” says Guy.

“Overall, the proposed levies would see New Zealanders paying around $76 million less in ACC levies if implemented, and this would come on top of $2 billion of levy cuts since 2011/12.

“The proposed levy rates have been based on the Government’s new funding policy for ACC, which aims to ensure the scheme is adequately funded to withstand economic volatilities, while keeping levies as low and stable as possible over time.”

He adds: “Another change this year is that ACC will consult on levies for a two-year period. This is about reducing bureaucracy and giving greater stability and certainty around levy rates.”

Levy consultation will run until 19 October, and submissions can be made online.