The Minister for ACC proposes changing the classification of motorcycles
The Minister for ACC proposes establishing a new class of 0 to 250cc motorcycles, increasing the number of classes from three to four.
And the Minister proposes moving the boundary between medium-sized motorcycles and large motorcycles from 600cc to 750cc as this better aligned cc size to risk exposure.
ACC reviewed the classes of motorcycles and mopeds for levying purposes, responding to questions from motorcycle owners.
|
Vehicle classes |
2024/25 levy |
|
Class 4A mopeds |
$99.33 |
|
Class 4B 0-600cc motorcycles |
$297.91 |
|
Class 4C 601+cc motorcycles |
$397.18 |
The current levy structure for mopeds and motorcycles — 3 classes
The regulations class vehicles in the Motor Vehicle Account based on their relative risk. Motorcycles are also classed on engine capacity, rather than using a power-based metric, that can change over the life of the motorcycle.
To determine relativity, ACC compares data for claim frequency and cost per motorcycle for each exposure to the risk with Class 2 vehicles (petrol powered cars). As can be seen in the table below, if the risk of injury from an accident in a car is 100%, then a moped is three times more likely (321%) to have an accident-causing injury and injury costs are three times as high (307%). As the cc rating increases so does the average claim cost per vehicle, even while the number of claims per vehicle (claim frequency) remains similar for each cc rating over 126cc.
Comparative risk for different classes of motorcycles, relative to Class 2 vehicles (100%), based on an ACC review of accident data from 2017 to 2023
Levy payers need to be grouped to ensure that the risk relativity — and therefore levies — are reasonably stable. Previously, ACC used one class of mopeds and two classes of motorcycles to achieve this, however from ACC’s review, the Minister proposes that stable levies can be achieved with three classes of motorcycles (and one class for mopeds) and would improve how well the levy aligns with the risk for each class of motorcycles.
It is proposed to group 0-125cc and 126-250cc motorcycles together even though there is a difference in relative risks between the two groups of motorcycles. The 0-125cc group of motorcycles has considerable variability in its risk profile over time due to the small number of vehicles in this group and are unsuitable to be a separate class. By combining them with the 126-250cc motorcycles, levy stability over time is established, and the levies charged are better aligned with the risk profiles than currently.
|
Class |
Current registration levy |
Recommended registration levy for 2025/26 |
Change in registration levy |
|
Mopeds |
$99.33 |
$66.34 |
Reduction of $32.99 |
|
0-250cc |
$297.91 |
$244.48 |
Reduction of $53.43 |
|
251-600cc |
$297.91 |
$343.28 |
Increase of $45.37 |
|
601-750cc |
$397.18 |
$343.28 |
Reduction of $53.90 |
|
751cc+ |
$397.18 |
$485.98 |
Increase of $88.80 |
The impact of changing groupings on levies for owners of petrol-powered mopeds and motorcycles including the proposed increase in average levy for the Motor Vehicle Account
The cumulative impact of the proposals.
If ACC’s and the Minister’s proposals are adopted, then the impacts on levy rates can be seen in the tables below. The tables show the impact of the proposed change in aggregate levy rates first followed by the impact of proposed changes that occur in the year. The final levy rates will depend on the range of proposals that are approved by the Government.
