10 Mar 2009

ACC vehicle levies to increase

5:55 pm on 10 March 2009

Registering and running a car is set to get more expensive after the Government on Tuesday announced increases to ACC levies.

ACC Minister Nick Smith says the levy for car registrations will rise by $32 and the levy from petrol will increase by half a cent a litre.

The changes take effect from 1 July.

The motor vehicle licence fee for a petrol-driven car will increase from $136 to $168, while the ACC petrol levy will rise from 9.34 cents per litre to 9.90c per litre.

Dr Smith acknowledges the latest increase follows a $50 rise last year, but says it is the bare minimum required to fund the cost of motor vehicle accidents.

He says increases to the motor vehicle levy largely reflect the cost of treating and rehabilitating the seriously injured.

Dr Smith says though the Government is committed to this, rising costs in ACC are not affordable and that is why it is embarking on a process of ACC reforms.

He admits the increases come at a tough time for vehicle owners, families and businesses.