Government announces 2010/11 ACC levy rates

Link to Beehive announcement

“The Government has opted for more moderate motorcycle levy increases than ACC recommended. [from 1st July 2010] Mopeds 50cc and under will pay $129.24; motorbikes up to 600cc will pay $327.70; and bikes over 600cc will pay $426.92. As part of the motorcycle levy, $30 will now be committed to injury prevention modelled on the successful programme in Victoria, Australia. My message to motorcyclists is the escalating costs of motorcycle accidents cannot be ignored but ACC wants to work with you on improving safety.”

Note that these amounts are just the ACC levy portion of a motorcycle vehicle licence, not including the other fees charged by NZTA.

For the ACC levy portion of the Licencing fee charged by NZTA, there are now three categories (following are the petrol categories):
Category                                   Was:         Will be:
Mopeds (up to 49/50cc)       58.97       129.24
Motorcycles (50 to 600cc)  252.69     327.70
Motorcycles (600+cc)           252.69     426.92

(Vintage – over 40 years old  58.97         69.46)

“The Government does not believe that there are sufficient motorcycles in the 50-125cc range to justify a separate class, so has opted for a single class for motorcycles up to 600cc.” (extract from this document: Questions and Answers)

On top of these levies are the other fees charged by NZTA.

Listen here to Nick Smith giving the clear impression that car owners are all paying extra to save motorcyclists paying a lot more:  Link to Checkpoint MP3

ACC releases levy increase proposals

“Mopeds – which currently pay just $59 in ACC charges – will instead be classed with small motorcycles of 125 CC or less and pay $257.58 in license fees and petrol levies.”

From ACC website:

“Motorcycle levies

Within the motor vehicle levy changes (summarised in the above table) ACC is proposing major changes to motorcycle levies to take into account the fact that for several years, car drivers have been subsidising motorcycle and moped riders.

The new levies reflect the fact that motorcycle riders are 16 times more likely to be involved in a road crash than any other road users and are far more likely to be seriously injured. In 2008/09 ACC paid more than $62 million for motorcycle riders but collected only $12.3 million in levies from them.

Even with the significant proposed increases in the rates payable by motorcycle and moped drivers to redress this imbalance, car drivers will still continue to subsidise motorcycle and moped drivers by $77 a year for the 2010/2011 year.

‘The proposed legislative change to extend the full funding date to 2019 would reduce the effect of residual claims on motor vehicle levies by $100,’ said Mr Judge. ‘However, whether or not this translates into an equivalent reduction in those levies will depend on how best to fund the account fully over the next 10 years. This is something the Board must determine.’

The proposals also change the categories for mopeds and motorcycles, by grouping mopeds and motorcycles together and introducing three sub-classes for 0-125 cc, 126-600 cc and 601+ cc cycles.

Consultation

Mr Judge said the ACC Board’s final view on levy increases will be informed by consultation and it will then make appropriate recommendations for Government to consider and to make a final decision.

Further information, including consultation documents and actuarial reports relating to setting levy rates and the estimated outstanding claims liability, is available from http://www.acc.co.nz/consultation. Alternatively, call 0800 ACC RATES (0800 222 728) or send an email with your request to consultation@acc.co.nz.
Making a submission

ACC is encouraging New Zealanders and affected organisations to have their say.

Submissions must include:

Your name
Your address
Your contact phone number(s)

You can send your submission:
By post:
ACC
PO Box 242
Wellington 6140

By fax:(04) 918 4395

By email:consultation@acc.co.nz

ACC link

Deadline for submissions: 5pm, 10 November 2009