Three ACC levy reductions

August 6th, 2014 at 2:00 pm by David Farrar

Judth Collins has announced three reductions in the levies we pay to . They are:

  1. Petrol levy drops 3 cents a litre
  2. Employer levy drops 5 cents per $100 of earnings
  3. Motor Vehicle registration fees drop an average of $136 (including impact of petrol levy drop)

The good news about these drops are that they are sustainable, with their respective accounts being at least 90% fully funded.

 

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14 Responses to “Three ACC levy reductions”

  1. Manolo (14,168 comments) says:

    I must confess that is the second time I have seen a fee reduction (the first one was the dreadful NZ On Air TV licence).
    The Minister and relevant organisations ought to be congratulated for this.

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  2. KiwiGreg (3,278 comments) says:

    The herald reported it as “bosses and workers lose out”.

    #balancedreporting

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  3. RRM (10,099 comments) says:

    :shock: Crikey! I didn’t expect that.

    Government levies and charges coming down, what will they think of next?

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  4. JamesBlake (62 comments) says:

    Didn’t the Herald report this morning that the ACC is at the point where they are 100% funded across the board. Did the PM say that the only reason they havn’t lowered the employee contribution is so that the Government books will show surpluss. Forget the fact that the ACC money can’t actually be used for anything other than ACC so it is just an accounting trick not preventing any borrowing. I would have thought as part of the Tax Payers Union that you would have insisted that ACC leveis be cut to the minimum they can be DPF?

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  5. Rex Widerstrom (5,013 comments) says:

    The Minister is to be congratulated for doing the right thing.

    But I wonder how long it’ll take the oil company cartel to come up with a reason why the price doesn’t drop 3c / litre? I’m betting it’s along the lines of “we’ve been holding prices artificially low out of the kindness of our hearts, now finally we can start making a meagre profit”.

    When they do, remember that Shell’s second-quarter earnings for the year more than doubled from a year earlier to $5.15 billion; BP achieved profits of $4.13 billion in the same period, up 65 percent (that’s a rate of £1.3 million an hour); while Exxon Mobil net income rose 28 percent to $8.78 billion.

    And that in Australia, motorists can simply go to their state “Fuelwatch” site and find the cheapest fuel near them, because Australian governments have legislated to force some degree of genuine competition between fuel companies rather than accepting this nonsense that it must somehow cost the same at every pump the length and breadth of the state.

    And that even in the remote Goldfields region, the most you’ll pay for a litre of 91 octane today is 171.9, though you could get it for 152.7 if you shopped round. In Perth – a city slightly bigger than Auckland, so with similar economies of scale, but the remotest city in the world – the average is 144.1.

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  6. mjw (401 comments) says:

    In recent years National made large increases in levies, claiming Labour had been improvident about the future of ACC. Looks like they got that completely wrong. But they are still refusing to hand all of our money back.

    What do National believe in again?

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  7. m@tt (636 comments) says:

    I’m currently paying some of my ACC tax through registration for three cars, two motorcycles two trailers and a caravan. Despite the fact I can’t operate them all at once, so my risk is really no higher than a person with one vehicle. This surplus I’m funding better be worth it.

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  8. anonymouse (705 comments) says:

    @Rex,

    But I wonder how long it’ll take the oil company cartel to come up with a reason why the price doesn’t drop 3c / litre?

    They don’t need a reason, the ACC levy is due to fall on 1 July 2015, which just happens to be the same day that the final 3c increase from this announcement is due.

    https://www.national.org.nz/news/news/media-releases/detail/2012/12/17/petrol-tax-and-road-user-charges-to-increase

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  9. Slipster (197 comments) says:

    m@tt, More or less by accident (how’s that for pun?) I happen to know the reasoning behind you case. Please note that I don’t personally agree with it, but it goes like that: Since you have, what – 8 vehicles total, the chance of one of them suffering mechanical/electrical failure (including rust) is proportionally higher. That’s the risk that ***in theory*** you pay for. The obvious questions about how much more, what’s statistically probable (expected) multiplier should be, remain not only unanswered but even unasked.

    And of course, that’s theory. I don’t think anyone needs any explanation for the real reason ;-(

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  10. bc (1,395 comments) says:

    Well the petrol levy already went up 3c/litre in July, so all that does is put it back to where it was before!

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  11. Rex Widerstrom (5,013 comments) says:

    @anonymouse

    … … … they really do think we’re retarded, don’t they?

    Not only the whole “giving with one hand while taking away with the other” bullshit, but the justification for it, which is (from your link):

    Excise increases in recent years have helped maintain the real value of the Land Transport Fund.

    These latest increases will also achieve that, and allow for continuing investment in the Government’s state highway building programme and other transport projects.

    Nice try, Gerry, but according to an Australian Parliamentary inquiry into fuel taxes, in New Zealand:

    The petrol excise is allocated to the National Roads Fund (13.6 cpl), general revenue (18.7 cpl), and Accident Compensation Corporation (2.0 cpl). Additional charges of 0.66 cpl are levied as a local authority tax and 0.025 cpl to fund fuel standard monitoring.

    So only 38 percent goes into roading improvements while 53 percent goes straight to Gerry’s mates in Cabinet to splash round on all sorts of pork barreling, pet projects and goodness knows what else.

    Back in the 90s New Zealand First tried to propose that all the fuel excise (bar ACC and fuel monitoring) be ring-fenced for roading improvements. National and Labour – addicted as they are to spending other people’s money – refused to countenance it.

    It’d be interesting to know how much that would have added to spending available for roads in the past 20 years or so. We’d certainly have kilometres of much-improved roads by now, with consequent benefits to business bottom lines (less man-hours and fuel wasted on congestion) and road injuries and fatalities, as well as reduced stress on millions of motorists.

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  12. CharlieBrown (1,054 comments) says:

    I still look forward to the day that a center right government opens ACC up to competition with proper underwriting done, that would provide the best incentive for accident rates to drop.

    Unfortunately we havn’t had a center right governments in a long time.

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  13. tvb (4,554 comments) says:

    What about diesel where the registration is about 2x petrol.? They better damn well drop it or I am not voting national.

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  14. Mark (1,502 comments) says:

    ABout time. The ACC acounting model has had todays payers funding both past tail liabilities and future contingent liabilities so we have been royally screwed for about the last 6 or 7 years. Sooner this whole fucking shambles is privatised the better.

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