The government is under fire for refusing to rule out Accident Compensation Corporation (ACC) levy increases.
The New Zealand National Party is challenging the government to justify why it won’t rule out the increases, claiming it left ACC with more than enough money to support the accident insurance scheme.
National’s ACC spokesperson Tim Macindoe mentioned ACC’s 2018 Annual Report, which reportedly shows that the funding ratio for the Motor Vehicle Account is at over 110% and that it has been well above its own funding position for the last three financial years.
“Given that the target for the fund is 105% there is no reason why increasing the ACC levy needs to be on the table,” Macindoe claims. “The Minister claims to be ‘very well aware of the cost pressure New Zealanders face’.
“However, despite acknowledging in Parliament last week that the ACC accounts were very full and that there needed to be some rebalancing, he put out for consultation the proposed 12.1% increase in the motor vehicle levy when it was suggested by ACC officials,” he noted.
National highlighted the proposed changes to the ACC motor vehicle levy, which include an increase of almost two cents per litre for petrol, would be on top of the government’s national fuel tax increases totalling an extra 12 cents a litre in their first term.
“If Jacinda Ardern can rule out extending the regional fuel tax beyond Auckland while she is Prime Minister, then surely she can do the same to rule out unnecessary ACC levy increases,” Macindoe added.
