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Safer Cars, Lower ACC Levies: Good Move, MTA Says

Safer Cars, Lower ACC Levies: Good Move, MTA Says

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. 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.”


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