MTA welcomes consultation on 2016/17 ACC vehicle levies

Media Release 2 October 2015

MTA welcomes consultation on 2016/17 ACC vehicle levies

The ACC Minister Nikki Kaye today announced the start of ACC’s public levy consultation process. The ACC Board is proposing levy reductions worth $450 million in 2016/17, spread across work, earners’ and motor vehicle levies. For the latter category, a reduction of $218 million is proposed for motor vehicle levies.

The reductions proposed for 2016/17 would see the average motor vehicle levy drop to around $130. The average motor vehicle levy has already fallen earlier this year from around $330 to $195; this levy was based on a risk rating of each vehicle.

The vehicle risk rating system was a new feature of the ACC vehicle levy this year; however, its introduction did not go smoothly and the rating methodology led to some anomalies. Car manufacturers, dealers, and consumers were confused about apparent differences in the perceived safety of seemingly similar vehicles.

This year’s levy consultation process will also include consultation on potential refinements to the motor vehicle risk rating policy. These refinements come after discussions with key stakeholders, which included the Motor Trade Association (MTA). Other organisations that came together on a joint working group with ACC included the Automobile Association (AA), Motor Industry Association (MIA), and Imported Motor Vehicle Industry Association (IMVIA). The proposed changes aim to enable greater consistency and integrity in the placement of vehicles in particular rating bands.

MTA continues to support the principle of risk rating as an important tool to inform consumers and encourage purchasing choices of safer cars.

The consultation papers are available at www.shapeyouracc.co.nz.

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