The ACC has announced a proposal that would see the average driver paying $14 more dollars per year, including a petrol price increase.
The corporation launched a month-long national public consultation tour on the levy changes today in Wellington.
The proposals include the average employer levy decreasing from $0.71 to $0.67 cents for every $100 of earnings, increasing the earners’ levy for workers from $1.21 to $1.24 for every $100 of earnings and the biggest change – the motor vehicle levy increasing from $113.94 to $127.68, including a proposed increase of 1.9 cents per litre for petrol.
"In the last two years since we set levies, we’ve received over 30,000 claims for road injuries which is pretty significant," ACC Chief Customer Officer Emma Powell said.
The yearly average of 30,400 road accident claims is nine per cent more than in 2016.
Other causes of the proposed hike are an increase in medical costs, increased wages for care and support workers, the introduction of free doctors visits for people aged under 14, and more weekly compensation claims.
ACC registration levies peaked five years ago at $333 under a different policy compared to now, at nearly a third of that cost.
Automobile Association principal advisor Mark Stockdale said with drivers already struggling with record-high petrol prices and the Government excise tax set to rise from this weekend, the increase in ACC levies should focus on registration costs.
"We do have record low licence levies for relicensing the car so have we got that mix right and I think that's what motorists will be questioning," he said.
ACC Minister Iain Lees-Galloway said the corporation would need a very strong case for him to support a fuel levy increase.
"I can assure every one that this Government is very well aware of the cost pressures that New Zealanders face, we're able to take that into account when we make our decision about ACC levies and we will," he said.
ACC will give the Minister its final recommendations after public consultation ends, with the final decision on increases made by the Government.
The final levy rates for the next two years are expected to be known by December.
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