Bikers' ACC levy lift pared back
BY VERNON SMALL
Relevant offers
The ACC has wound back recommended levy increases for motorcyclists, but riders of big bikes will still face a rise of more than 50 per cent next year.
The state insurer will today release to ministers its final recommendation, which will see the levies on employers, workers and motor vehicles all rise.
The work account levy, paid by employers and the self-employed, will rise from $1.31 for every $100 of earnings to $1.89, but that is expected to be cut to $1.57 once law changes going through Parliament are in place.
Earners face a rise from $1.70 now to $2.80 per $100 of income next year, although that will drop to $2.70 once the new ACC law is passed.
The average rate for cars (including the levy on petrol) will surge from $287 to $352.19 a year.
Lobbying by motorcyclists, including a 5000-strong rally at Parliament last month, failed to change the ACC's plan to cut the cross-subsidies for motorcyclists, chairman John Judge said.
"We don't see any policy reason why motor vehicles as a whole should be subsidising motorcyclists."
However, a change in assumptions had trimmed the recommended increase and that could drop further if ACC Minister Nick Smith decides, as signalled, to moderate the rise.
Figures released yesterday show the ACC's final recommendation would see the levy on moped owners rise from $100 a year now to $247.22.
The cost for motorbikes bigger than 600cc would rise from $430.54 to $739.32, but that is down on the $781.12 originally suggested by the ACC. It would fall to $659.26 once the law change was in place.
Judge said the new rates should mean the workers' levy would not rise again for a decade. "We have set the levy at a rate we think we can keep steady for 10 years because to the extent that inflation puts our costs up, equally it will put wages up, and so our levies will go up."
Over the same period, motor vehicle levies would need to rise only by the rate of inflation.
After 10 years, ACC would be fully funded, including for its pre-1999 liabilities, and levies would need to cover only the current year costs of accidents.
Judge said there were still some areas of unfairness and cross-subsidisation that the ACC could not address under its current legislation. He would raise them with an expert group looking at possible changes to the scheme, including opening some accounts to competition.
One possible change was the levy on retired or unemployed motor vehicle owners.
"You and I, when we drive our cars, are insured for both medical treatment and for earning compensation. If you took my mother, before she ceased to drive, for the last 20 years she's only been insured for medical and yet she's paying the same rate," he said.
"At its heart it doesn't seem very fair ... that the poorest people in the community would subsidise the people with the highest incomes in terms of that income-replacement insurance as far as motor vehicles are concerned."
People who owned several cars or motorcycles also faced unfairness because they paid a levy on all their vehicles, although they could drive only one at a time, he said.
"It's a completely valid point. It's certainly the sort of thing I want to bring to the notice of the stocktake."
- © Fairfax NZ News
Sponsored links
#32 Lyndon - You're missing the point - ACC is not in turmoil. State funded propaganda is trying to make it appear this way.
Totally agree with #30 Whetu Chini - I was at the protest and not one article in the press even quoted the statistics, obtained from ACC's own data, presented in speeches which showed that: - There is no funding crisis at ACC. - The figures presented as true cost of levies by government for motorcyclists are over 300% inaccurate (i.e. at approximately 100,000 registered bikes this is approximately $600 each rather than the $2,000 figure presented by government). - Over 50% of motorcycle accidents involve other vehicles. - ACC do not capture accurate statistics such as capacity of motorcycles involved in accidents. - Care for motorcyclists is significantly less than that for pedestrians, cyclists and car addident victims. - For a no blame compensation scheme one group is being blamed - who's next?
Even more ludicrous and odd that a 5,000 strong protest on the steps of Parliment didn't even make the front page of the Dominion.
An 8 year old school newspaper journalist could do better than our press "journalists", who are incapable of actual investigative journalism, by just copying what was said and reproducing it.
Good one Mikem40 just blame national-they are fixing a bullsup created by typical labor party handout policy!! Too much give give give to get votes, and throw acc into turmoil at the same time !!!
And how about the expensive newspaper ads promoting the raising of ACC levies using discredited figures? Isn't there some truth in advertising legislation? Take heed JK, there are over 250,000 bikers who all vote, and are sick of paying more than their fair share. No problem at all in paying their way, but when you use dubious figures and make riders pay this inflated fee ON TOP OF car rego, you are asking for a slap at the polls...
I thought we had jusy voted out a thoughtless nanny-state government.
Motorcyclists have been poorly served by news media coverage of this sad and sorry saga. Most media have merely repeated information provided by ACC and its Minister, despite credible counter information put forward by Prof Charlie Lamb and BRONZ, amongst others.
Dominion Post columnist Tracy Watkins reported on the Bikoi but obviously never took the trouble to venture outside and see who was there protesting on Parliament's lawn. A significant percentage of those attending were women. Most bikers are professional National/ACT voters, not the "blue collar" set that appeals to the prejudices held of us by Tracy and others. The Bikoi wasn't a case of the Labour Party rallying its faithful. John Key and his political advisers overlook this reality at their peril.
New Zealand needs intelligent and perceptive journalism. We are currently awash with lazy repeaters. Our democracy is the poorer for this.
If and when the ACC levies for motorcyclists happens, remember do not vote for National at the next elections! This is what National does best, hit people in the pockets and puts the country into economic chaos!
So when these ACC earner levy increases take effect in April 2010 it shall mean that my take home pay will be lower than is was 18 months before when Labour were still in power. What happened to giving us more of the money we earned to get us out of the recession John? This is effectively giving everyone a 1% pay cut which will probably push us back into recession next year.
The ACC figures given in the article a typical on the "spin" given to the whole affair. For example, "The cost for motorbikes bigger than 600cc would rise from $430.54 to $739.32,". The motorbike ACC levy is not $430.54, it is $252.69. This appears to the old "make it sound less of an increase" trick. They do say cost may come down in the future - yeah right. Also mentioned are plans to split off and levy other areas. Will you be able to afford the ACC levy on your children when that comes?
Judge said the new rates should mean the workers' levy would not rise again for a decade. "We have set the levy at a rate we think we can keep steady for 10 years because to the extent that inflation puts our costs up, equally it will put wages up, and so our levies will go up." --- Why does ACC want to 'tax' (or 'levy') us with 2020 post-inflationary rate when our salary/wages are still on 2009/2010 level? Couple that with the difficult times that we are having at the moment, that is akin to adding insult to injury. And to think that this is sanctioned by our elected representative (i.e., Government) is not only insulting to our intelligence but is also beyond logic!
Peter your right on the button, along with several other people, since when has ACC been an insurance agency? It is an accident compensation corporation, or have they forgotten their own name?!
I agree that all NZers need to be taking note of the direction this is going and be very, very concerned.
And Paul, as well as keeping an eye on postings like these and having a say, I was at the protest on the 31/10, the bikoi and another protest ride on Sunday, as well as sending in a submission.
Hunt under way for young girl's attacker
Bail denied for journalist-murder accused
Search after yacht found unmanned off coast
Urewera Four trial: Policeman questioned over surveillance
Thousands die each year post surgery
Pike River gas monitoring concerns not passed on
Council rules 'limited' building repair
New 'pot' sneaks on to shelves
Cop mistakes chocolate bar for cellphone
TPK boss pays back wife's travel money
Man arrested on cocaine smuggling charges
Gareth Morgan: I hope Norwegian sinks
Man arrested on cocaine smuggling charges
House sales rise, median price stable
Urewera Four trial: Policeman questioned over surveillance
Whitney death sparks rush for music
TPK boss pays back wife's travel money
Greens: Faster Mojo money decision wanted
Thousands die each year post surgery
World Cup prompts shoppers to open wallets
Bail denied for journalist-murder accused
Gatland looming as Lions coach to Australia
Whitney to have private memorial
Hurricanes rookie Shields hopes the hype will help
Woman felt sex life was on trial
Gay couple hijack radio divorce
Cop mistakes chocolate bar for cellphone
Sonny Bill Williams under pressure to face top pro
Daily trivia quiz: February 15
Man dies two days before 27th wedding anniversary
From the annoying to the dangerous
Guinness' all time greatest game ending
Auckland, Wellington expensive for expats
Cash for jaunts but not to help deaf MP
Lady Gaga confirms second show
Do you think Waitangi Day and Anzac Day holidays should be "Monday-ised"?
Related story: Nats to discuss Mondayising holidays
Newest First
Oldest First





Seems that once again the public of NZ take whatever the idiot government officials deciede is good for them and NZ's coffers. The protests will probably get them nowhere. About time the motorcycle fraternity took some real action. Band together and refuse to pay the levies at all. If the fees are levied with registration, then dont pay it. Come to that, if every motorcyclist refused to pay any charges at all, and all removed their number plates then the hitler like cops of this country could do little ablout it. There would be too many. Sure a few would get caught and fined, but an agreement amongst the many to pay those fines for the few would work a treat.