The Government are pulling back on increasing ACC levies and are set to scrap the levy model that rates cars on its make and model, a scheme said to place the burden onto low-income families.
Today, Prime Minister Jacinda Ardern said the work levy would decrease and was expected to save New Zealand businesses $100m, from 72 cents to 67 cents per $100 of liable earnings.
She also said the annual license and petrol levy would remain at $113.94, instead of increasing.
Ms Ardern said ACC proposed to increase the petrol levy by about 1.9c alongside an increase in the average motor vehicle levy about 12 per cent (from $114 to $128).
Public consultation feedback was "fairly overwhelming".
"We considered the wider public good when making the final decision."
"ACC levies will not increase."
She said levies were discussed, however "a compelling case" would need to be presented for the Government to agree to any rises.
"The Government is determined to ensure Kiwis aren’t being charged more without reasonable cause, while lifting wages for New Zealanders."
Minister for ACC Iain Lees-Galloway also announced the ACC's Vehicle Risk Rating "which applies different levy rates to different makes and models of cars based on their safety ratings", is set to end.
He said it was challenging to administer and there was no evidence it make New Zealand's vehicle fleet safer.
"It also loads more of the burden onto low-income people and families, as they are generally less able to buy cars with the best safety ratings."
SHARE ME