Hon Nathan Guy

Acting Minister for ACC
21 September 2016 Media Statement

ACC levy consultation welcomed

Acting ACC Minister Nathan Guy today welcomed the start of ACC’s public levy consultation process.

“This is an opportunity for New Zealanders to share their views about levies and other aspects of the ACC scheme,” says Mr Guy.

The process involves ACC releasing proposed levy rates, then after considering feedback the ACC Board recommends rates to the Government, which makes the final decision on levies.

As part of levy consultation this year, ACC will consult on:

• a proposed reduction of 8 cents to the average work levy paid per $100 of liable earnings (from 80 cents currently to 72 cents)

• a proposed reduction of $16.32 to the average motor vehicle levy, which includes the annual licence levy and petrol levy (from $130.26 currently to $113.94)

• a proposed increase of 4 cents to the earners’ levy paid per $100 of liable earnings (from $1.21 currently to $1.25).

“ACC’s proposed levy rates take into account the strong position of its levied accounts, but also the need to recognise trends around things like claims volumes and costs.

“Overall, the proposed levies would see New Zealanders paying around $76 million less in ACC levies if implemented, and this would come on top of $2 billion of levy cuts since 2011/12.

“The proposed levy rates have been based on the Government’s new funding policy for ACC, which aims to ensure the scheme is adequately funded to withstand economic volatilities, while keeping levies as low and stable as possible over time.

“The Board has indicated that, in light of submissions received, they will consider how they’ve applied the new funding policy before making their levy recommendations to Government.

“We will scrutinise their recommendations carefully, particularly regarding any levy increase, to ensure final levy rates reflect the new policy and consideration of the views of New Zealanders.

“As part of levy consultation this year, ACC will also consult on my behalf on other areas of interest to many New Zealanders, including:

• interim measures to reduce levies on electric vehicles (for many vehicles, this would see the levy fall from $86 to $22)

• maintaining the motorcycle safety levy at $25.

“Another change this year is that ACC will consult on levies for a two-year period. This is about reducing bureaucracy and giving greater stability and certainty around levy rates.

“Consultation runs until 19 October and you can make a submission online, so I encourage everyone to have their say.”

More information about levy consultation is available here.

ends

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