New Zealand Gazette – 2016 – No. 35

Page 6

✨ Motor Vehicle Account Financial Projections



NEW ZEALAND GAZETTE, No. 35 — 22 APRIL 2016

Levy year end

Year ending 30 June Average levy rates (excluding MSL*) Levy ($m) Lifetime cost of new year claims ($m) Administration costs for new year claims ($m) Levy required to fund lifetime cost of new average per vehicle claims ($ average per vehicle) Accrued assets ($m) OCL** ($m) Account balances ($m) Funding ratio
2015/16 194.25 652 432 55 128.55 16.48 9,905 9,452 453
2016/17 130.26 443 452 58 132.88 17.07 10,279 9,788 491
2017/18 134.64 463 472 61 137.17 17.65 10,667 10,134 533
2018/19 139.23 485 493 63 141.68 18.24 11,063 10,494 569
2019/20 143.81 507 516 65 146.40 18.58 11,477 10,877 600
2020/21 147.99 528 538 68 150.93 18.99 11,906 11,282 624
2021/22 152.99 552 563 70 156.10 19.35 12,353 11,709 644
2022/23 157.98 577 589 72 161.25 19.72 12,818 12,156 662
2023/24 162.91 602 616 74 166.65 20.09 13,295 12,616 678
2024/25 168.33 630 644 77 172.25 20.48 13,794 13,100 694
2025/26 173.62 657 674 79 178.07 20.87 14,315 13,604 711
2026/27 179.49 688 706 82 184.15 21.28 14,860 14,126 734
2027/28 185.19 718 739 84 190.51 21.71 15,429 14,671 757

*Motorcycle Safety Levy

**Outstanding Claims Liability

The table above presents the projected levy and funding path after applying the Board’s funding policy. The table below summarises the key assumptions underlying these projections.

Motor Vehicle Account Key Assumptions

Year ending 30 June Claim numbers (entitlement claims) Growth in average claim cost
Standard inflation (LCI*)
--------------------- ------------------------------------ -------------------------------
2015/16 5,995 1.9%
2016/17 6,075 1.9%
2017/18 6,149 1.9%
2018/19 6,223 1.9%
2019/20 6,298 1.9%
2020/21 6,374 1.9%
2021/22 6,451 1.9%
2022/23 6,529 1.9%
2023/24 6,607 1.9%
2024/25 6,687 1.9%
2025/26 6,768 1.9%
2026/27 6,849 1.9%
2027/28 6,932 2.0%

*Labour Cost Index

The following table compares the components of the 2016/17 prescribed average levy rate with those applied in 2015/16. The 2015/16 components are shown both as applied to set the levy rate in 2014 and as applied to set the levy rate for 2016/17.

Trend in underlying costs average levy per vehicle Initial 2015/16 (last year's assessment) Current 2015/16 (this year's assessment) Prescribed 2016/17
Motor Vehicle levy: To fund the cost of new claims during the new levy year $120.02 $128.55 $132.88


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Online Sources for this page:

Gazette.govt.nz — PDF NZ Gazette 2016, No 35




✨ LLM interpretation of page content

🏥 Prescribed Motor Vehicle Account levy rates for the 2016/17 levy year (continued from previous page)

🏥 Health & Social Welfare
31 March 2016
Accident Compensation, Motor Vehicle Account, Levy Rates, Regulations, ACC, Insurance, Consultation, Financial Projections, Funding Policy, Claim Costs