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Government should rule out ACC levy increase

Government should rule out ACC levy increase

The Government needs to justify why it won’t rule out ACC levy increases when ACC’s finances are in good health and Kiwis are already faced with record petrol prices, National’s ACC spokesperson Tim Macindoe says.

“The Government refuses to rule out yet another petrol tax increase which would increase cost of living pressures for families further, despite clear evidence that National’s sound management left ACC with more than enough money to support the scheme.

“Today, the ACC Minister said that he would consider the ‘cost of living and costs that are faced by middle income New Zealanders’ so he should take this opportunity to assure them that petrol won’t increase further as a result of an ACC levy hike.

“ACC’s 2018 Annual Report shows that the funding ratio for the Motor Vehicle Account is at over 110 per cent and it has been well above its own funding position for the last three financial years. Given that the target for the fund is 105 per cent there is no reason why increasing the ACC levy needs to be on the table.

“The Minister claims to be ‘very well aware of the cost pressure New Zealanders face’. However, despite acknowledging in Parliament last week that the ACC accounts were very full and that there needed to be some rebalancing, he put out for consultation the proposed 12.1 percent increase in the motor vehicle levy when it was suggested by ACC officials.

“The proposed changes to the ACC motor vehicle levy include an increase of almost 2 cents per litre for petrol. This would be on top of the Government’s unnecessary national fuel tax increases totalling an extra 12 cents a litre in their first term.

“If Jacinda Ardern can rule out extending the regional fuel tax beyond Auckland while she is Prime Minister, then surely she can do the same to rule out unnecessary ACC levy increases.

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