The Automobile Association is dismayed the government has passed up an opportunity to ease the burden on car owners from ACC levies.

ACC had proposed to cut motor vehicle levies for the owners of all cars, utes and vans from next year. The levy reductions would have ranged from $10 to $92 a year according to a vehicle’s safety rating.  The total saving to some 3 million car owners would have been $160 million for the 2014/15 financial year and every car owner would have received some level of reduction.

“The annual licence fees motor vehicle owners pay are the highest they have ever been. Some motorists are struggling to pay their levies and it would have been a welcome relief for many people to save some money in licence fees,” says AA spokesperson Mark Stockdale.

The Government has indicated that it wants its motor vehicle account to be fully funded before it looks to cut levies but the AA believes it could have given some reductions now and still achieve its funding targets.

“ACC will meet its funding target by 2015, four years ahead of schedule. Meanwhile, accident claims are falling due to safer vehicles, safer roads and safer driving. The AA’s view is that motorists should be rewarded with cuts to levies now.

“The government’s decision is denying motorists savings of $160 million in their own pockets, money that would be much better spent in the economy – or used to maintain vehicles to a safe standard – than putting ACC’s books in the black sooner,” Mr Stockdale added.

For more information contact:

Mark Stockdale
Principal Advisor – Regulations New Zealand
Automobile Association
T. +64 4 931 9986
M. +64 21 434 097
E. mstockdale@aa.co.nz

The New Zealand Automobile Association is an incorporated society with over one million members. It represents the interests of road users who collectively pay over $2 billion in taxes each year through fuels excise, road user charges and GST.