On 7 December 2016, the Acting ACC Minister, the Hon Nathan Guy, confirmed the ACC levy rates for the 2017/18 and 2018/19 years. The Minister said that there will be reductions totalling $126.2m per annum to work and motor vehicle levies, while the earners’ levy will remain unchanged.
The announcement means that:
- the average work levy paid by employers and self-employed people will reduce from 80 cents to 72 cents per $100 of liable earnings (a reduction of 10%)
- the average motor vehicle levy, which includes the annual licence levy and petrol levy, will reduce from $130.26 to $113.94, a reduction of 12.5%, and
- the petrol levy will reduce from 6.9 cents to 6 cents per litre, a reduction of 13%.
The Minister said that the Government has decided not to implement ACC’s recommended four cent increase to the earners’ levy paid by everyone in the paid workforce to cover out-of-work injuries, This is because the earners’ account’s current funds are sufficient to meet its liabilities at this point in time.
Other changes include updates to vehicle risk ratings which determine licence levies, based on recent crash data, and a reduction to the annual licence levy for electric vehicles.
Annual licence levies for motorcycles will remain at current levels, but motorcyclists will benefit from the reduced petrol levy. The motorcycle safety levy will also remain unchanged.