Give your feedback > Motor vehicle account aggregate rate

ACC proposal - Open for feedback until 9 Oct 2024

Proposed changes to the Motor Vehicle Account levy

We propose increasing the Motor Vehicle Account levy to support people recovering from injuries that result from a motor vehicle.

127

Agree

1837

Disagree

1080

Responses

We propose increasing the average Motor Vehicle levy from $113.94 to $122.84 in 2025/26, $131.94 in 2026/27, and $141.69 in 2027/28.

Motor Vehicle Account	Current (2024/25)	2025/26	2026/27	2026/27
Cost of supporting recovery		$969,787,897	$1,013,210,708	$1,055,037,431
Operating costs		$4,546,469	$4,520,014	$4,657,679
Total funding for new claims		$974,334,366	$1,017,730,722	$1,059,695,110
Funding adjustment for current funding position		-$295,694,163	-$276,051,735	-$255,532,873
Levy required for the year		$678,640,203	$741,678,987	$804,162,237
Accepted funding shortfall from FPS caps		-$152,185,119	-$169,415,095	-$182,209,468
Proposed levy		$526,455,084	$572,263,892	$621,952,769
Motor Vehicle levy per vehicle	$113.94	$122.84	$131.94	$141.69
Year on year change		+7.8%	+7.4%	+7.4%

The levy collected for the Motor Vehicle Account is used to support injuries from motor vehicle crashes that happen on public roads.

Recovery from injuries that result from motor vehicle accidents generally take longer with a higher proportion of injuries requiring support for ten or more years.

Some people’s injuries are so severe a full recovery will never be possible. In these cases, our work is focused on supporting the best life possible.

Reasons for proposed levy increase

The key drivers behind the proposed increase in the average motor vehicle levy rate have been:

lengthening recovery periods for workers injured in road crashes
the increasing cost of caring for those who are seriously injured (e.g. brain and spinal trauma).

How we collect the Motor Vehicle levy

Motor Vehicle levies are paid in two different ways:

Petrol at the pump – currently at $0.06 per litre.
Part of the vehicle licence (registration) fee.

For petrol-powered vehicles, over the period 2025/26 to 2027/28, ACC is proposing to continue collecting on average 48% of the levy from petrol use and the rest through vehicle licensing.

Vehicle registration is cheaper for owners of petrol-powered vehicles than owners of diesel vehicles because they also pay a levy on petrol. The average levy collected for an equivalent vehicle is the same whether it is petrol or diesel powered.

For example, a VW Golf is available as a petrol or diesel model and for levying purposes may be classed as a petrol-driven passenger vehicle or a non-petrol driven passenger vehicle. However, when average petrol consumption is factored in, they’re both likely to pay a similar amount over a year.

Motor Vehicle levies only cover accidents on public roads. We don’t include a levy in the price of diesel because diesel is often used in vehicles used exclusively on farms or for different purposes entirely, such as electricity generators or marine engines.

We collect different rates for different vehicle classes

We don’t charge a standard or ‘flat’ levy rate for every vehicle on the road. We group vehicles into ‘vehicle classes’ ranging from vintage cars to heavy goods vehicles. We believe it’s fairer that owners pay an amount that reflects the risk of their class of vehicle.

When recommending levy rates for each motor vehicle, we take the last seven years of data from the Police crash analysis system that records Police attended road crashes and:

match it to our injury data
then determine the risk of each motor vehicle class, compared to the risk of other vehicle classes.

The updated crash and injury data has shown that we need to update the relativities (the factor that compares the relative risk between classes of vehicles) for:

vintage, veteran and tractors (classes 3 and 6)
motorcycles (classes 4 and 8)
light goods service vehicles (classes 5L and 9L)
heavy goods service vehicles (classes 5H and 9H).

These classes of vehicles will experience a change in levies that is different compared to the average levy increase in 2025/26, as we adjust for new relativities.

Risk is determined by looking at the frequency of an injury and the average cost of supporting that injury (including compensation for lost wages or salary) for each vehicle class.

This allows us to collect the funds required to support recovery from motor vehicle injuries more fairly.

The bulk of the costs for motorcyclists is paid by other vehicle owners

Motorcyclists have little protection in a crash, which contributes to the cost of supporting recovery from injuries for riders and their passengers.

We require $439.3 million in levies (equivalent to $1,394 per motorbike) to support injured motorcycle riders and their passengers to recover from the injuries we expect over the next three years.

The current levy rates for motorcyclists mean they contribute 28% towards the costs of supporting injuries sustained by riders and their passengers.

Motorcyclists have not had a levy increase for more than 10 years. The remaining costs of motorcycle rider and passenger injuries are funded by other road users. For example, the owner of a car or SUV will contribute $24.87 to subsidise the cost of motorcycle injuries.

Our recommended levy rates

The recommended motor vehicle class rates are set out below. The petrol-powered vehicle classes have been set using the recommended $0.06 per litre petrol levy (unchanged from the current year). Our review of claim experience has seen goods vehicles over 3,500kg showing an improved experience which has resulted in their levies decreasing despite the average levy having to increase by 7.5% per annum.

Recommended Motor Vehicle Class Rates

		Current	2026	2027	2028
Average levy		$113.94	$122.84	$131.94	$141.69
Motor Vehicle Class Levies Payable when the vehicle is relicensed each year
2	Petrol driven passenger vehicles	$42.09	$51.00	$60.09	$69.28
2A	Light electric vehicles (EV, PHEV, Hybrid)	$42.09	$51.00	$60.09	$69.28
3	Petrol driven tractors, vintage and veteran vehicles, and specified vehicles	$23.17	$27.33	$32.20	$37.12
4A	Petrol driven mopeds*	$99.33	$107.09	$115.02	$123.52
4B	Petrol driven motorcycles 600cc or less*	$297.91	$321.17	$344.96	$370.45
4C	Petrol driven motorcycles over 600cc*	$397.18	$428.19	$459.91	$493.90
5L	Petrol driven goods vehicles 3,500kg or less	$74.46	$86.76	$97.93	$109.39
5H	Petrol driven goods vehicles over 3,500kg	$243.59	$237.40	$256.15	$276.04
6	Non-petrol driven passenger vehicles	$101.07	$109.06	$116.94	$125.36
7	Non-petrol driven tractors, vintage and veteran vehicles, and specified vehicles	$55.65	$58.43	$62.65	$67.17
8A	Non-petrol driven mopeds*	$112.95	$120.39	$128.05	$136.37
8B	Non-petrol driven motorcycles 600cc or less*	$311.53	$334.48	$357.99	$383.31
8C	Non-petrol driven motorcycles over 600cc*	$410.80	$441.50	$472.94	$506.75
9L	Non-petrol driven goods vehicles 3,500kg or less	$129.64	$139.38	$149.45	$160.22
9H	Non-petrol driven goods vehicles over 3,500kg	$260.81	$254.56	$272.96	$292.62

*excludes the Motorcycle Safety Levy

		Current	2026	2027	2028
Motor vehicle levy on holders of trade plates
	Holders of trade plates for trailers	Nil	Nil	Nil	Nil
	Holders of trade plates for vehicles not classified elsewhere	$42.09	$51.00	$60.09	$69.28
	Holders of trade plates for mopeds and motorcycles 60cc of less*	$99.33	$107.09	$115.02	$123.52
	Holders of trade plates for mopeds and motorcycles over 60cc*	$397.18	$428.19	$459.91	$493.90

*excludes the Motorcycle Safety Levy

		Current	2026	2027	2028
Goods vehicles over 3,500kg in the Fleet Saver programme
5H	Petrol driven goods vehicles over 3,500kg
	Bronze level achieved	$217.50	$211.94	$228.86	$246.78
	Silver level achieved	$178.38	$173.76	$187.91	$202.89
	Gold level achieved	$139.26	$135.57	$146.97	$159.00
9H
	Bronze level achieved	$234.73	$229.10	$245.66	$263.36
	Silver level achieved	$195.61	$190.92	$204.72	$219.47
	Gold level achieved	$156.49	$152.74	$163.77	$175.57

The Motorcycle Safety Levy

The Minister for ACC is not proposing any changes to the Motorcycle Safety Levy. It will continue to be collected at the current rate of $25 each year, per motorbike or moped, to continue funding targeted funding in motorcycle safety.

The Motorcycle Safety Levy supports delivery to ACC’s Motorcycle Safety Strategy through funding motorcycle safety related initiatives, such as the RideForever Programme or partnering with NZTA - Waka Kotahi on roading improvements.

11 Sep 2024

ACC proposal - Open for feedback

9 Oct 2024

Consultation closes

Oct 2024

Recommendations to the Minister

Dec 2024

Final decisions by Government

Agree

Disagree

94%

Agree

Disagree

94%

MC Levy increase

Looking at Rego renewal for the Harley compared to a Mazda car, Motorcycles already pay a heavy levy (10x that paid by Cars )

Harley ACC levy

ACC Levy $397.18 + GST

ACC safety levy $25.00 + GST

Total = $422.18 + GST

Mazda Car ACC Levy

ACC Levy $41.27 + GST

We can acknowledge that there are less Motorcycles on the roads compared to Cars therefore costs are amortised over a small group and that there is less protection on a Motorcycle so more likely to have serious injury in an accident.

The ACC argument is that using the Crash Analysis System data held by NZ Police and NZTA Waka Kotahi, ACC has found that 37% of ACC claims for rider and pillion passenger injuries come from crashes on public roads where:

only a single motorcycle was involved.
and where Police assessed that the rider’s actions contributed, at least in part, to the crash.
So the 37% is including accidents involving a car verse motorcycle where the car driver was at fault but the rider contributed, at least in part, to the crash.

That’s also saying 63% of accidents were as a result of Car verses Motorcycle where the car was in the wrong.

Motorcycles are being unfairly penalised and blamed for accidents that are more often as a result of a Car verses Motorcycle where the Car driver is at fault.

Yet the burden of covering the cost of the injuries is placed on the motorcyclist and there is less of them on the roads anyway so a few are having to pay the burden of injury costs and we are already paying a high levy currently

My motorcycle is the only vehicle I am licensed for. It has been beneficial to my mental health, if this goes ahead I won’t be able to afford to keep on top of my mental health. I already pay around $700 per year for insurance, this is going to make it harder on me.

The only fair option is the risk per user per class combined with RUC. An inexperienced over confident driver is high risk compared to an experience and highly trained driver. How is it fair they pay the same rates having night and day risk profiles? Insurance companies do it, why not ACC?

My son rides a lams approved 375ccbike and I ride a 1000cc sports bike. Your logic is I should pay double the Rego despite having 40 years riding experience, and not a single acc or insurance claim from a motorcycle crash. A 600 sports bike is just as quick, and usually ridden more recklessly, by a less experienced rider than most 1000cc bikes yet is charged less. I think riders coming back to riding after years not riding, and buying expensive, large capacity cruisers might be skewing the stats. Charge the rider and not the bike.

Fine if it's per person, not per vehicle (motorcycle). I own multiple motorcycles, but can only ride one at a time. I shouldn't be paying multiple acc levies

No, it's unfair on a no blame system. Contributions should be equal across the board. There are other road users, like cyclists that are even more vulnerable in an accident don’t pay a levy at all. These claims are paid out of a general fund. Just like it is with MX riders, MTB riders and horse riders to name a few. What i’m getting at is these are all more or less (with exceptions) HOBBIES that people do for enjoyment and probably considered high risk of injury ones at that. For many, motorcycling is also a HOBBY and it is done for the enjoyment not a solely a form of transport. This is something done for fun and yet we are targeted for levies at least twice for, or exponentially more times if we have more than one motorcycle.

I am writing to express my disagreement with the proposal to increase the ACC levies for motorcycles. I believe this proposal is flawed for several reasons.
Firstly, the proposed levy increase is not applied to motorcycles that are not registered. This creates an unfair situation where some motorcycles are exempt from the levy simply because they are not registered. This loophole undermines the purpose of the levy and creates an uneven playing field for motorcyclists.
Secondly, I suggest that registration should be applied to the user rather than the motorcycle. Many motorcyclists own multiple motorcycles but do not use them simultaneously. Applying the levy to the user would be a fairer approach and would ensure that all motorcyclists contribute equally, regardless of the number of motorcycles they own.
Additionally, I believe that anyone riding a motorcycle off-road should also be registered as a rider for the purposes of ACC, and there should not be an exemption. This would ensure that all motorcyclists, regardless of where they ride, contribute to the ACC fund and are covered in case of accidents.
Lastly, I believe that bicycles and cyclists should also be registered for ACC. This would help recover costs and ensure that all road users contribute to the ACC fund. Cyclists, like motorcyclists, are vulnerable on the road and should be included in the ACC levy system.
In conclusion, I urge the ACC to reconsider the proposed levy increase and to address the issues outlined above. A fair and equitable system is essential for all road users.
Thank you for considering my submission.

Surely it would be fairer to all road users if the rates paid were linked to kilometres travelled on the roads, rather than a time based levy? For example, at the moment a lot of motorcyclists do very few km's per year but pay the same as the rest.

I have one car and two motorbikes which I pay a huge amount for ACC levy, over a person who may have only one vehicle. I can only drive one vehicle at a time so why am I paying for two ACC levy's for vehicles that I am not driving. So one accident but paying way more than a person with one vehicle when they have one accident. Both getting the same ACC treatment. Seems like ACC extortion!

A better Government that can evaluate how NZ can become self sustainable through manufacturing and Development creating a country that can once again be a supplier of key products to the world to help alleviate all these costs.

Motorcycles are already paying too much. Most of their injuries are caused by bad car drivers, and poor road conditions. The people driving the cars and not fixing roads, spilling diesel, put slippery paint on the driving line, pulling out in front of motorcyclists, changing lanes into them and other needless accident causing actions - they should pay. Why is it cyclists get off free - they use the road too. We should be encouraging more motorcyclists to keep down traffic and be more efficient - not punishing them because car drivers are half asleep at the wheel. You'v got this upside down.

More robust system to probe some of the claims made under ACC, especially the small to mid-term beneficiaries.
Tourists can buy a travel insurance instead of being covered under ACC.

I have multiple motorbikes and paying the levy on each is prohibitive. Their should be an option either to levy the bike or levy the rider.

Putting the rego up will only cause more people to ride on hold and acc will get less revenue. No rego 200 buck fine vs 600 proposed in yr3. You can get caught 3 times and break even

Horse riders/mountain biker riders dont pay acc levies ….There accidents are classed as motorcycle this is wrong

I am writing to express my disagreement with the proposal to increase the ACC levies for motorcycles. I believe this proposal is flawed for several reasons. Firstly, the proposed levy increase is not applied to motorcycles that are not registered. This creates an unfair situation where some motorcycles are exempt from the levy simply because they are not registered. This loophole undermines the purpose of the levy and creates an uneven playing field for motorcyclists. Secondly, I suggest that registration should be applied to the user rather than the motorcycle. Many motorcyclists own multiple motorcycles but do not use them simultaneously. Applying the levy to the user would be a fairer approach and would ensure that all motorcyclists contribute equally, regardless of the number of motorcycles they own. Additionally, I believe that anyone riding a motorcycle off-road should also be registered as a rider for the purposes of ACC, and there should not be an exemption. This would ensure that all motorcyclists, regardless of where they ride, contribute to the ACC fund and are covered in case of accidents.
In conclusion, I urge the ACC to reconsider the proposed levy increase and to address the issues outlined above. A fair and equitable system is essential for all road users. Thank you for considering my submission.

I own several motorcycles and pay the ACC levy on all of them @ registration time. I can only ride one motorcycle @ a time. This is grossly unfair! It would be much fairer to increasing the ACC content at the petrol pump thereby making it a fairer user pays system. Fact..a LOT of motorcycle accidents are caused by other motorists ("SMIDSY"..Sorry I
Didn't See You") so IMO my submission would mean a much fairer system.
For background, I am 65 years old. I've been riding (and racing, a multiple NZ Classic champion in several classes) motorcycles for 61 years and have only ever had one road accident...a SMIDSY when was 16 years old.

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