✨ Motor Vehicle Account Levy Information
NEW ZEALAND GAZETTE, No. 42 — 20 APRIL 2017
The petrol levy component of the levy rate has been reduced to 6.0 cents per litre for the 2017/19 levy period.
The MSL has been maintained at $25 for the 2017/19 levy period.
Figure 2: Long-term projected average Motor Vehicle Account levy rates and funding ratios allowing for levy rates prescribed in the Accident Compensation (Motor Vehicle Account Levies) Regulations 2017
Changes since 31 March 2016
At 31 December 2016 the funding ratio was close to that forecast using 31 March 2016 assumptions. The actual and expected funding ratios are shown below in Figure 2.
Figure 3: Motor Vehicle Account—expected and actual funding ratios
| Funding ratio (31 December 2016 as projected at 31 March 2016) | Actual funding ratio (31 December 2016) |
|---|---|
| 112% | 116% |
The difference between the expected and actual funding ratios will have an immaterial impact on future levy requirements.
Conclusion
The average Motor Vehicle Account levy rate recommended by the Board to the Minister for ACC, and which was agreed to by Cabinet, is consistent with the funding policy.
HERWIG RAUBAL, BEC, FNZSA, FIAA, Chief Risk and Actuarial Officer, Accident Compensation Corporation.
Appendix A: Motor Vehicle Account
Motor Vehicle Account Long-Term Projections
| Year ending 30 June | Average levy rates ($ per vehicle excluding MSL*) | Levy ($m) | Lifetime cost of new-year claim costs ($m) | Administration costs ($m) | Levy required to fund lifetime cost of new-year claim costs ($ per vehicle) | Accrued OCL** assets ($m) | Account balances ($m) | Funding ratio |
|---|---|---|---|---|---|---|---|---|
| 2016/17 | 130.26 | 447 | 451 | 52 | 131.41 | 15.27 | 10,721 | 9,514 |
| 2017/18 | 113.94 | 395 | 470 | 55 | 135.50 | 15.96 | 10,971 | 9,731 |
| 2018/19 | 113.94 | 400 | 491 | 59 | 139.77 | 16.91 | 11,215 | 9,968 |
| 2019/20 | 127.34 | 453 | 511 | 62 | 143.83 | 17.41 | 11,511 | 10,246 |
| 2020/21 | 127.34 | 458 | 532 | 65 | 147.96 | 18.05 | 11,809 | 10,559 |
*MSL: Motorists' Safety Levy
**OCL: Outstanding Claims Liability
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NZ Gazette 2017, No 42
✨ LLM interpretation of page content
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Motor Vehicle Account Levy Information
(continued from previous page)
🏥 Health & Social WelfareACC, Motor Vehicle Account, Levy Rates, Insurance, Vehicle Owners, Funding Policy, Claims Experience, Economic Factors
- HERWIG RAUBAL, BEC, FNZSA, FIAA, Chief Risk and Actuarial Officer, Accident Compensation Corporation