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Car registrations will be cheaper from next month, driven down by a drop in the cost of serious injury claims and improved financial performance at ACC.
From July 1, the ACC component of registering a car will cost $126.01, down from $141.10. The motor vehicle levy also includes a petrol excise
duty which is unchanged.
However, the ACC levy change means it will also be cheaper to run motorbikes, mopeds, tractors and vintage cars as well as trucks and vans.
ACC media adviser Richard Braddell said the biggest reason for the drop was the bullishness of the commission's investments, but the drop may be a one-off.
"We are finding long-term treatments are costing more than expected. That would have meant the levy would have gone up without the well-performing investments."
The drop in the cost of the ACC element of car registrations follows a 2.2 per cent decrease in ACC levies for self-employed on April 1, while the Government also announced there would be no increase for the employer and earners' levy.
The government sets the ACC levy each year and the money meets the total cost of rehabilitation and compensation, the cost of managing the scheme, and running injury prevention and other programmes.
Mr Braddell said while a number of ACC programmes are starting to bite, the last year has bucked that trend.
"Alcohol-related injuries have dropped markedly since the ACC booze bus programme began in 1998. The average speed has reduced slightly and we're getting reasonable recall of our advertising.
"Over the past 10 years there has been a decline in the number of claims, and in those for serious injuries -- the largest cost to ACC. However, the trend has been unfavourable in the last year and will place pressure on levies if continued."
Car registration is administered by the LTSA, which decides the final amount consumers pay.
- NZPA
