Motorists will pay about $50 more in ACC levies to cover the increasing cost of road accidents. Photo / Glenn Jeffrey
Motorists will have to pay about another $50 on average after ACC levy rises hit them at the pump and with an increase in car registration.
The ACC levy for employers is set to drop six cents but workers will lose eight cents out of every $100 of
pay as their ACC levies go up to cover non-work accidents.
Motorists are being hit in the pocket with an increase in the ACC levy to cover the costs of road accidents.
ACC Minister Maryan Street yesterday said the Government had adopted the new levy rates following advice from ACC and the Department of Labour.
The employer levy would decrease from $1.32 to $1.26 per $100 of earnings, Ms Street said.
The earner levy - which covers non-work, non-motor vehicle injuries - would increase from $1.16 to $1.24 per $100 of earnings.
The motor vehicle levy would go from $204.78 to $254.63.
This increase would be split 50/50 between the petrol levy and registration fees. For diesel vehicles, the licence fee would increase according to the vehicle's classification.
National ACC spokeswoman Pansy Wong said the price of petrol would be going up by around two cents a litre.
She also said the ACC levy hikes were effectively a tax increase.
"Labour is using its cynical pre-Christmas dump to hide these levy increases." she said.
The new rates take effect in April except for the motor vehicle levy hike which takes effect in July.
Ms Street said increased levies generally reflect overall claim numbers and healthcare costs, particularly for long-term claimants.
The motor vehicle levy rate reflected an increase in motor vehicle injuries, the relative severity of those injuries and the growing costs of treatment and rehabilitation including the provision of home support, she said.
Ms Wong said more information was needed to justify why the employee levies had risen in excess of inflation.
- NZPA
