EV owners face ACC levy hikes

EV owners will see the Accident Compensation Corporation (ACC) levy part of their annual vehicle registration fee increase from $42.09 to $109.05 at the start of July  next year.

The price jump comes after the government announced a raft of changes to ACC levy rates following public consultation on proposals in September and October and advice from the Ministry of Business, Innovation and Employment.

EVs and petrol cars currently attract the same ACC levy of $42.09, but it will more than double for EVs from July 1, 2025, while the cost for petrol cars will increase by 17.3 per cent to $49.38.

The difference in the figures takes into account that EV owners don’t buy petrol, which currently includes a motor vehicle levy of six cents per litre.

The ACC levy for EV owners will climb to $115.34 in the 2026/27 financial year and to $122.24 the year after. 

For petrol cars, the cost in those periods will be $56.75 and $64.26 respectively.

The additional expense for EV owners comes on top of the government introducing road user charges for zero-emitters and plug-in hybrids in April.

Earners’ and work ACC levies are also set to rise steadily over each of the next three years after cabinet approved changes to rates and the levy system.

Matt Doocey, Minister for ACC, also announced this month there will be an independent review of the state injury insurer because of concerns about declining rehabilitation rates and increasing costs.

“ACC provides critical support to New Zealanders in times of need, but I am concerned that ACC's performance has been declining for a decade,” he says.

“Rehabilitation rates are down, weekly compensation costs are up and average costs per claim are up. This imposes significant costs on households.”

Doocey notes the review will have a particular focus on claims management.