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ACC levies save Kiwis $126m a year: Guy

NZ Newswire logoNZ Newswire 6/12/2016

The way motor vehicle licence levies are calculated will be updated to include recent crash data while electric car drivers can expect to make savings, the government has revealed.

The changes are part of the biennial review of the Accident Compensation Corporation's levies.

Acting ACC Minister Nathan Guy announced there would be reductions in the overall motor vehicle levy as well as the fee paid by employers and self-employed workers.

And a recommended four-cent increase in the earner's levy won't be implemented, he said on Wednesday.

"This is because the earner' account's current funds are sufficient to meet its liabilities at this point in time," he said.

For the next two years the petrol levy will be reduced from 6.9 cents to 6 cents, the motor vehicle levy will be reduced by 12.5 per cent and the employer's levy by 10 per cent.

Together the reductions add up to more than $126 million per year, Mr Guy said.

Vehicle risk ratings which determine the licence levy amounts may also change for individual motorists based on recent crash data.

Licence levies for motorcyclists will remain the same while the electric vehicle annual levy will be reduced.

"The change to the electric vehicle levy is an interim measure which supports the government's programme encouraging people to make the switch to electric vehicles, and allows further work to be done on how the ACC levy system accommodates new technology," Mr Guy said.

Mr Guy said the new work levy rate would apply from April next year, and motor vehicle levies from July.

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