✨ Motor Vehicle Account Levy Rates
NEW ZEALAND GAZETTE, No. 35 — 22 APRIL 2016
Prescribed Motor Vehicle Account levy rates for the 2016/17 levy year (1 July 2016 to 30 June 2017)
Following public consultation, the Board recommended that the government reduce the Motor Vehicle Account average levy by 33%, from $194.25 to $130.26 (excluding the MSL) for the 2016/17 levy year. The recommended rates, as well as the indicative out-year levy rates in the Board’s consultation, were consistent with the Board’s funding policy. Cabinet agreed to the rates recommended by the Board, and the rates have now been prescribed in the Accident Compensation (Motor Vehicle Account Levies) Regulations 2016.
The 2015/16 levy rates included a positive funding adjustment to move the Account to its funding target. The funding target has now been reached so levy rates for 2016/17 can be reduced.
The new levy rates are projected to result in a surplus of $38 million for 2016/17, and maintain the funding ratio of 105% at year end.
The petrol levy component of the levy rate has been maintained at 6.9 cents per litre for the 2016/17 levy year.
The MSL has been reduced from $30 to $25 for the 2016/17 levy year.
On 31 March 2016, the residual levy portion of Motor Vehicle Account levies will cease. This will not affect the amounts people pay in motor vehicle levies. More information about the residual portion can be found in Appendix B.
Conclusion
The levy rates recommended by the Board to the Minister for ACC, and which were agreed to by Cabinet, are consistent with the Board’s funding policy and the principles of financial responsibility in the Act.
HERWIG RAUBAL, BEC, FNZSA, FIAA, Chief Risk and Actuarial Officer, Accident Compensation Corporation.
Appendix A: Motor Vehicle Account
Motor Vehicle Account Long-Term Projections
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NZ Gazette 2016, No 35
✨ LLM interpretation of page content
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Prescribed Motor Vehicle Account levy rates for the 2016/17 levy year
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🏥 Health & Social Welfare31 March 2016
Accident Compensation, Motor Vehicle Account, Levy Rates, Regulations, ACC, Insurance, Consultation
- HERWIG RAUBAL, BEC, FNZSA, FIAA, Chief Risk and Actuarial Officer, Accident Compensation Corporation