3 Dec 2013

ACC minister defends decision on vehicle levy

8:34 am on 3 December 2013

ACC Minister Judith Collins says she wants to make sure the ACC's motor vehicle account is fully funded before accepting levy cuts for car owners.

Last week, ACC suggested reducing the Motor Vehicle levy by an average of 15% from next year, which for some owners would have meant about $90 off their annual registration.

Ms Collins says that will now happen in mid-2015.

She told Morning Report in addition to waiting until the account is fully funded, ACC wants to introduce a risk rating for the motor vehicle levies, which would require more work between the Transport Agency and ACC.

She said it would be silly to cut the levies now, only to have to raise them again later.

AA upset at no cut

The Automobile Association is hugely disappointed that the Government has rejected the proposal to cut the levy on motorists from 2014.

It says levies that motor vehicle owners are paying are at record highs and it is time there was some relief.