Rotorua Weekender: ACC levy cuts mean big savings for families
Anyone noticed that car registrations were seeming to be a bit (or a lot) expensive. I registered my car a month or so ago and the nice lady at the VTNZ in Sala St suggested that I pay for only a few months as she had heard the cost was coming down. She was right. The cost of owning and running a car is about to be severely reduced, after $500m worth of ACC levy reductions come into effect on July 1. The biggest reductions will be seen in the work account, the motor vehicle levy, and the petrol levy paid at the pump. These reductions mean substantial savings for Rotorua businesses and families, with people being able to keep this money in their own pockets.
As of July 1 the motor vehicle levy, paid when registering your car or bike will be reduced by around 41%, falling significantly by around $130 to $68. This latest reduction continues a policy trend to make ACC sustainable, dependable and cheaper since 2012, saving New Zealanders a total of around $1.5 billion. On top of this, a further $500 million of reductions were announced during Budget 2015, taking the total savings in ACC levies for everyday New Zealanders to $2 billion
These are real savings for New Zealand families. But they are also prudent and balanced measures made possible by ACC’s sound financial performance. We’ve seen dramatic turnaround in ACC’s finances since 2008 which means the amount that we pay for this important insurance coverage can, and should, be reduced accordingly.
While ACC is in a good position now, this has not always been the case. When we were elected, the scheme had a $4.8 billion shortfall in one year alone. We made significant changes to the way the ACC works and it is now performing a lot stronger, and providing better value for tax payers. The sound financial performance means ACC is now essentially fully funded, allowing funds to be invested to meet the future costs of all current claims.
You work hard and ACC should only charge the money that it needs. The Government is committed to setting ACC levies in a way that is fair to both levy payers and claimants and maintains ACC’s ability to the meet the needs of New Zealanders in the future. To find out how much you will safe in ACC levies on your car, head to http://rightcar.govt.nz/rego.html and enter your license plate number.