ISSUE
Friday, August 22, 2025
Volume 16 . Issue 73
Budget 2015 will signal ACC is on track to provide further levy cuts of around $375 million in 2016/17 and $120 million in 2017/18, says ACC Minister Nikki Kaye.
“These indicative levy cuts represent a total saving for New Zealanders of around $500 million, and will be spread across the motor vehicle, work and earners accounts,” says Ms Kaye.
The cuts are based on current financial projections and a funding direction which sees each of these accounts heading towards a solvency band of between 100 and 110 per cent.
“The indicative reductions, if confirmed, will take total levy cuts since 2012 to around $2 billion, benefitting businesses, workers and motor vehicle owners alike.
“As an example, this year the average ACC motor vehicle levy, including the annual licence levy and petrol levy, will fall from around $330 to $195 a year,” adds Ms Kaye.
There will also be further significant reductions to work levies, and the earners levy will also come down.
Ms Kaye is also introducing legislation, developed over the past year, to put in place a new ACC levy-setting framework, which will take effect in 2016/17.
“The legislation I’m introducing will bring the levy setting process into line with the kind of accountability and transparency requirements that already apply to the operation of the government’s core budget under the Public Finance Act.
“The new levy setting process will enable people to see the delicate balance between ensuring there’s a sufficient buffer in each account to withstand volatilities, while demonstrating that we’re not over-collecting money that could be in people’s pockets,” says Ms Kaye.
The new legislation will also enable the residual levy, which funds ongoing costs of claims lodged before 1999, to be discontinued when these costs have actually been fully funded. Existing legislation requires that the residual levy be collected until 2019.
Budget 2015 will signal ACC is on track to provide further levy cuts of around $375 million in 2016/17 and $120 million in 2017/18, says ACC Minister Nikki Kaye.
“These indicative levy cuts represent a total saving for New Zealanders of around $500 million, and will be spread across the motor...
Budget 2015 will signal ACC is on track to provide further levy cuts of around $375 million in 2016/17 and $120 million in 2017/18, says ACC Minister Nikki Kaye.
“These indicative levy cuts represent a total saving for New Zealanders of around $500 million, and will be spread across the motor vehicle, work and earners accounts,” says Ms Kaye.
The cuts are based on current financial projections and a funding direction which sees each of these accounts heading towards a solvency band of between 100 and 110 per cent.
“The indicative reductions, if confirmed, will take total levy cuts since 2012 to around $2 billion, benefitting businesses, workers and motor vehicle owners alike.
“As an example, this year the average ACC motor vehicle levy, including the annual licence levy and petrol levy, will fall from around $330 to $195 a year,” adds Ms Kaye.
There will also be further significant reductions to work levies, and the earners levy will also come down.
Ms Kaye is also introducing legislation, developed over the past year, to put in place a new ACC levy-setting framework, which will take effect in 2016/17.
“The legislation I’m introducing will bring the levy setting process into line with the kind of accountability and transparency requirements that already apply to the operation of the government’s core budget under the Public Finance Act.
“The new levy setting process will enable people to see the delicate balance between ensuring there’s a sufficient buffer in each account to withstand volatilities, while demonstrating that we’re not over-collecting money that could be in people’s pockets,” says Ms Kaye.
The new legislation will also enable the residual levy, which funds ongoing costs of claims lodged before 1999, to be discontinued when these costs have actually been fully funded. Existing legislation requires that the residual levy be collected until 2019.
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