Employees and motorists to pay more in ACC levies

Stuff reports:

Motorists are set to take another hit on their wallets, with the Accident Compensation Corporation proposing a double-digit rise in motor vehicle levies.

ACC said it planned to increase its levy on petrol by 1.9 cents a litre and raise the average annual levy on car registrations from $113.94 to $127.68 a year.

The increased charges would apply from next year and would represent a price rise of 12.1 per cent on its existing levies.

ACC cited increased costs for care and support workers “resulting from the pay equity settlement agreed by Government” as one of the reasons why its levies needed to rise.

ACC is also planning to increase levies paid by workers by 2.5 per cent, from the existing rate of $1.21 for every $100 of liable earnings to a new rate of $1.24.

A 12.1% and 2.5% increase hits employees who are also motorists.

But levies on employers would decrease 6.9 per cent, from $0.72 to $0.67 for every $100 of liable earnings. 

Good news for me as an employer!