ACC withdraws petrol levy proposal

The Accident Compensation Corporation (ACC) is proposing that levies on petrol remain unchanged for the 2019 to 2021 period - opposing its initial recommendation in September.

Instead, it is recommending collecting a higher proportion of motor vehicle account levies via rego. The decision against increasing the petrol levy, ACC noted, follows feedback from the public during its levy consultation, wherein it received more than 6,000 submissions – six times more than the last levy round two years ago.

 “The ACC Board has carefully considered public feedback in our recommendations to the Government,” ACC Board Chair Dame Paula Rebstock said. “We’ve also kept in mind that when we set levies for vehicle owners, we need to balance feedback with adhering to the Government Funding Policy to make sure the money we collect will cover the lifetime costs of all injuries that happen on our roads.”

The changes ACC has proposed to ACC Minister Iain Lees-Galloway include:

• Decreasing the average work levy for employers by 5 cents from $0.72 to $0.67 (a 6.9% decrease) for every $100 of liable earnings;
• Increasing the earner’s levy for workers by 3 cents from $1.21 to $1.24 (a 2.5% increase) for every $100 of liable earnings
• Increasing the average motor vehicle levy for road users from $113.94 to $127.68 (a 12.1% increase). But, the funding split will shift to 66% from the rego and 34% from petrol. This keeps the petrol charge at 6 cents per litre with no increase but still increases the average motor vehicle levy to $127.68.

The commission noted public submissions raised concerns about the proposed increases to the earner’s levy and the motor vehicle levy but it is still recommending the proposed increases to go ahead. ACC suggested this is because of cost pressures from increasing claim numbers, serious injuries and medical costs; the impact of pay equity; and expected lower investment returns.

“This will make sure the accounts remain fully funded,” it said.

ACC added it is looking to introduce incentives to reward businesses for making workplaces safer. It will also investigate discounts for multiple vehicles and distance-based levying as well as reviewing its Fleet Saver programme and No-Claims Discount programme.