TODAY |

Car registration fees to drop dramatically as ACC levies slashed

Getting your car registered is set to get cheaper after big changes to ACC levies were announced today.

The changes will affect how much you pay in levies through taxes and vehicle insurance. Source: 1 NEWS

The Government is promising half a billion dollars' worth of cuts to ACC levies over the next couple of years, on top of recent cuts.

"These indicative levy cuts represent a total saving for New Zealanders of around $500 million," says ACC Minister Nikki Kaye.

This will mean more money for both employers and employees through the reduced levies.

"The indicative reductions, if confirmed, will take total levy cuts since 2012 to around $2 billion, benefitting businesses, workers and motor vehicle owners alike," says Ms Kaye.

Under the changes the Government aims to slash the current $330 car registration fees to $195 this year and to a further $120 in 2017.

In another change the Government wants to take more control over how ACC levies are set from the beginning of the process and stabilise the levies.

"This legislation reflects the outcome of that work and will deliver greater transparency around the levy-setting process and more stable levies over time," says Ms Kaye.

In the past the Government and ACC have clashed over the levies.

The Government will take submissions on the changes before they make their final decision in consultation with ACC later this year.