$438m motor vehicle levy cuts from today

New Zealanders will have an extra $438 million a year in their pockets through ACC motor vehicle levy cuts that kick in today, says ACC Minister Nikki Kaye.

“From today, the average motor vehicle levy, including the annual licence levy and petrol levy, will fall from around $330 to $195,” says Ms Kaye.

“All car owners will receive annual licence levy cuts of between $40 and $130 for petrol cars, and between $80 and $170 for diesel cars.

“The ACC petrol levy also falls to 6.9 cents per litre from today, down from 9.9 cents per litre.

“These levy reductions are possible because of the improved financial position of ACC’s motor vehicle account, which funds support for people injured in motor vehicle crashes on public roads.

“The account is now fully funded, which means it has enough funds to meet the anticipated lifetime costs of all current motor vehicle related claims.

“From today, risk rating also comes into effect.

“A vehicle’s design isn’t the only factor that affects safety on the road. However, in a crash it can play a huge role in whether people live or die, and how seriously they are injured. We want people to think about that if possible when buying a vehicle.

“Risk rating is about empowering people with greater information about the safety of vehicles, and also delivering greater fairness by recognising the cost of injuries that result from less safe vehicles.

“Under risk rating, the licence levy reflects how well a car protects people in a crash. The safer the car, the lower the levy, but all car owners receive a levy cut.

“It’s important to note that it’s not just new vehicles that have the lowest levies. Half of all cars in the safest two levy bands are 10 years old or more, so there’s room to choose a safer make or model when buying a second-hand car.

“While there have been technical issues that have affected the correct levying  of a small number of New Zealand’s 2.7 million cars, agencies are working hard to fix this and refunds will be paid.

“The overwhelming feedback I get from New Zealanders is that they’re delighted and surprised by the extent of motor vehicle levy cuts, and they also recognise we need to continue to apply lots of different levers to help make our roads safer.

“Risk rating is one part of a bigger picture, aimed at ensuring more people arrive safely at their destination.”

More information about 2015/16 ACC motor vehicle levies is available here.