ACC levies for 2002-2003

  • Lianne Dalziel

The government has rejected ACC’s recommendation that emergency service vehicles be required to pay levies, as they are an integral part of the emergency response to accidents and events where injuries can arise.

ACC Minister Lianne Dalziel said both ACC and emergency service vehicles played important roles in response to accidents.

“For that reason, the government decided that it was entirely appropriate for emergency service vehicles to continue to be exempted from the Motor Vehicle levy.”

The Minister also detailed the government’s decisions on ACC levy rates for 2002-2003.

“The Employers’ levy remains the same at an average 90 cents per $100 of payroll. Although ACC recommended a reduced levy rate of 85 cents, the government decided there was a need to give employers some stability in levy rates from year to year, as well as building up reserves. I am pleased to note that employers have improved practices by setting up strong health and safety measures.

“Last year, ACC announced an actuarial loss of $313 million. This is a precautionary approach.

“The Self-Employed levy increases to $1.75 (up from $1.35). That increase is the result of increased claims and the costs of managing those claims. Self-Employed have the ability to nominate the level of compensation through the CoverPlus Extra Programme.

“The Earners’ Account increases slightly from $1.10 to $1.20, and the Residual Claims levy remains the same at 35 cents.

“The Motor Vehicle levy, from which emergency service vehicles are still exempt, increases from $128.45 to $141.10. One of the issues we have had to grapple with has been the Motorcycle levy which will increase from $138.81 to $211.65. Motorcyclists have been funding between 12%-22% of the total costs of injuries from accidents that involve motorcycles. Despite the levy increase, motorcyclists will still only fund 35% of the total cost of injuries from motorcycle accidents.”

The new rates take effect from 1 April 2002, with motor vehicle relicensing from 1 July 2002.

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