Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Government delivers $480 million reduction in ACC levies

Government delivers $480 million reduction in ACC levies

ACC Minister Judith Collins today announced reductions to motor vehicle levies in 2015/16 meaning the average New Zealand vehicle owner will be $135 better off each year.

“Earlier this year the Government signalled our intention to reduce ACC levies as part of Budget 2014 – today’s announcement delivers on this,” Ms Collins says.

“ACC continues to improve its financial situation, transforming the way it supports injured New Zealanders and building on its investment returns.”

In the last levy round significant reductions were made to the Work and Earners’ Accounts. This year’s focus is on reductions to the Motor Vehicle Account. The average levy will fall from around $330 to $195. This includes reductions to the licence fee and a drop of 3 cents per litre off the petrol levy.

In addition, the average levy paid by employers and self-employed people into the Work Account will fall to 90 cents per $100 of liable earnings, down from 95 cents.

“These reductions to Work and Motor Vehicle levies represent an annual saving of $480 million to New Zealand households and businesses in the 2015/16 levy year,” Ms Collins says.

“This year’s reductions, which come on top of reductions over recent years, have meant that New Zealand households and businesses will keep almost $1.5 billion, since 2011/12.

“The Government will also introduce risk rating for light passenger vehicles (cars). This will place vehicles into bands, based on their crash safety ratings, from most safe to least safe and charge each band a levy based on the cost to the scheme of different vehicles.

“While all vehicle owners will receive considerable reductions in their ACC levies, we want to ensure the amount people are paying reflects the cost to the Scheme.”

As an example, the introduction of risk rating for cars, together with the overall reduction of motor vehicle levies, owners of petrol-driven cars in the safest grouping will see the ACC component of their annual vehicle licence fee fall by 66 per cent.

Ms Collins says while the Government remains on track for further levy cuts across all accounts in 2016/17, it’s important levies continue to be set in a way that is fair, fiscally responsible and maintains ACC’s ability to fund entitlements in the future.

“We are working through the exact amounts and timing of those levy reductions and a review of the residual levy – whose role is effectively completed – is part of that consideration,” Ms Collins says.

The new ACC levy rates for motor vehicles will come into effect on 1 July 2015. The lower Work Account levy rate takes effect on 1 April 2015.

ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell:
On The Last Rites For The TPP

The Trans Pacific Partnership trade deal is one of those litmus issues that has always had more to do with one’s place on the political spectrum than with any imminent reality.

To date, the Greens have opposed (a) a wide range of the leaked content of the TPP (b) the secretive way it has been negotiated and (c) the undemocratic way in which any final document would be ratified. Labour has shared some of those concerns, but while remaining generally supportive of the deal itself.

National has, for its part, been very enthusiastic about the TPP, while still giving assurances about Pharmac being protected... For the TPP’s friends and foes alike though, the end now seems nigh. More>>

 
 

Gordon Campbell: On The Farcical Elevation Of David Seymour

With the election won, it’s time to find jobs for the boy. David Seymour is the Act Party’s latest scrounger to be rewarded by the National Party, and not only with a seat in Parliament. More>>

ALSO:

As Key Mulls Joining ISIS Fighting: McCully Speech To UN Backs Security Council Bid

It is an honour to address you today on behalf of the Prime Minister and Government of New Zealand. Our General Election took place last week - our Prime Minister Rt Hon John Key is engaged in forming a government and that is why he is unable to be here in New York... More>>

ALSO:

Labour: Cunliffe Triggers Party Wide Leadership Contest

David Cunliffe has resigned as Labour Leader, but says he will seek re-election... If there is any contest the election will have to go through a process involving the party membership and union affiliates. More>>

ALSO:

Flyover Appeal: Progress And Certainty, Or Confusion And More Delays?

Lindsay Shelton: The Transport Agency, embarrassed by the rejection of its flyover alongside the Basin Reserve, says it’s appealing because the decision could “constrain progress.” Yet for most clear-sighted Wellingtonians a 300-metre-long concrete structure above Kent and Cambridge Terraces would in no way be seen as progress… More>>

ALSO:

Gordon Campbell: On Cunliffe’s Last Stand

Right now, embattled Labour leader David Cunliffe has three options. None of them are particularly attractive for him personally, or for the Labour Party... More>>

ALSO:

Key Seeking 'New Ideas': Look To Children’s Commissioner On Poverty - Greens

John Key should not reinvent the wheel when it comes to ideas for tackling child poverty, and instead look to the recommendations of the Children’s Commissioner’s Expert Group on Child Poverty, Green Party co-leader Metiria Turei says. More>>

ALSO:

'Safe To Re-Enter' - OIA Docs: Safety Is Absolute Priority At Pike River Mine

“We understand that the time it is taking to complete our evaluation of the risks is frustrating for the family members and we are trying to complete this work as quickly as we can,” Ms Dunphy says. “It is Solid Energy’s responsibility to make this decision and we will do so, once we have all the information required to make a fully-informed decision.” More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
More RSS  RSS
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news