FFNZ Congratulates ACC for Rectifying Tractor Levy

28 June 2002

Federated Farmers President Alistair Polson has congratulated ACC for addressing an anomaly regarding the exemption of tractors from ACC levies shortly after the Federation bought the matter to their attention.

"Most tractor owners were exempt from paying ACC levies as part of the Motor Vehicle License fee until 1 July 1999 in recognition of their limited on road use, said Mr Polson. "These Regulations were changed in the Accident Insurance (Motor Vehicle Premium and Motor Vehicle Account Levy) Regulations 1999, which meant that tractors were technically bought within the scope of the ACC levy.

"The Federation suggested to ACC that there is little reason for charging an ACC levy on tractor registration and that ACC should amend the Regulations accordingly.

"I am advised that 805 tractor owners have been issued with motor vehicle licensing invoices, which contained an ACC levy of $58.14. ACC has confirmed that this levy does not need to be paid, but tractor owners must still register their vehicles. The 95 tractor owners who have already paid the ACC levy will be reimbursed by ACC.

"Yet again this example points to the need for both regulations and legislation to be scrutinised rigorously before implementation. The Federation has long advocated the need for a Regulatory Responsibility Act to curb regulatory excess."

ENDS

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