7 Dec 2016

ACC levies to be reduced even further

5:08 pm on 7 December 2016

Fresh reductions in Accident Compensation Corporation (ACC) levies have been announced by the government, with the first of them to take effect from April next year.

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Photo: ACC

Acting ACC Minister Nathan Guy said there would be yearly reductions of more than $126 million for work and motor vehicle levies, but the earners' levy would remain unchanged.

He said the cuts have been made possible by improved financial management of ACC, which has led to a significant improvement in the funding position of all the levied accounts.

The average work levy paid by employers and self-employed people will drop by about 10 percent.

The average motor vehicle levy, including the annual licence fee and petrol fee, will fall by slightly more than $17.

The petrol levy will also reduce by 13 percent, a drop of about 0.9 cents a litre.

More reductions came into effect earlier this year, and were estimated to add up to $450m in savings.

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