ACC levies 2002-2003 8/9

Lianne Dalziel Accident Insurance

ACC Levy Rates 2002-2003 Motor Vehicle Account

Standard (Class 2) Motor Vehicle - - At A
Glance:

Current Rate 2001-2002 Per standard vehicle New Rate 2002-2003 ACC
Recommended Rate		 Department of Labour Recommended Rate
$128.45 $141.10 $141.00 $141.00

General

  • Levies are collected from two sources:
    • An excise duty on petrol sales (2.3 cents per litre) and;
    • A portion of the annual vehicle licence fee.
  • Annual licence fee portion is assessed on a fully funded basis and consists
    of two components:
    • A motor vehicle levy which funds the cost of injuries which occur during the
      levy year; and
    • A prior claim levy, which will fund the ongoing costs of claims, which
      occurred before 30 June 1999.
  • Rates for different classes of vehicle apply.
  • Class 2 vehicles include: goods service vehicles, motorcars, self-propelled
    caravans, mobile cranes, passenger service vehicles, all motor vehicles not
    elsewhere classified.
    • Class 3 vehicles include mopeds, tractors, veteran or vintage motor
      vehicles, non-registered vehicles.
    • Levies for this group have been split. The current rate is $44.98. The new
      rates are as follows:
      • Petrol vehicles: $49.39
      • Non-petrol vehicles: $58.14.

Increase due to:

  • Increasing rehabilitation costs for serious injuries ;
  • Previously funded on pay-as-you-go basis, now need to build reserves.
Other ACC recommendations Government decision
Service vehicles (ambulances, fire service vehicles and hearses) which
are currently exempt be subject to levies. (class 1 vehicles)		 Emergency service vehicles continue to be exempt.
Non-petrol trucks pay an additional annual levy on the licensing fee of
$35. To be collected with relicensing.		 As
recommended.
Non-petrol cars pay an additional annual levy on the licensing fee of
$25. To be collected with relicensing.		 As
recommended.

History of Account

The severity of the injuries in this account means that a relatively
small increase in injuries can result in a significant increase in cost to the
scheme

Current Rate 2001-2002. New Rate 2002-2003 ACC
Recommended Rate		 Department of Labour Recommended Rate
$138.81 $217.50 $217.50 $217.50

General

  • The motorcycle levy differential will be increased from 105% to 150% of the
    class 2 rates for standard vehicles.
  • Motorcyclists are still only funding 35% of the costs of accidents involving
    motorcycles - the remaining 65% of costs will continue to be subsidised by other
    motorists.

Increase due to:

  • The levies paid by motorcyclists historically have not funded the actual
    costs of the accidents they are involved in - ACC data from 1995/96 to 2000/01
    reveal that motorcyclists have only been funding between 12%- 22% of the total
    costs of accidents involving them.
  • LTSA statistics for 1998 reveal that motorcyclists are 5.2 times more likely
    to be involved in motor vehicle accidents, than other vehicle owners, and ACC
    claims establish that when an accident occurs the results are likely to be more
    severe.