Media Release: 10 December 2009

AA welcomes lower ACC levy increases

The AA is pleased that increases to ACC levies, announced today by ACC Minister Nick Smith, are lower than the proposals from the ACC Board.

AA Motoring Affairs General Manager Mike Noon says that extending the date for fully funding pre-1999 claims has helped to moderate increases in the motor vehicle levies.

“Nobody wants to pay more so it’s pleasing that the Minister has listened to people’s concerns and decided to take a more modest approach with levy increases.

“The AA particularly welcomes the initiative to set aside $30 out of motorcycle levies for injury prevention. This is something that has worked well in Victoria, Australia, and hopefully it will also help to save lives here,”says Mr Noon.

“The $30 increase for petrol car owners is the best case scenario and the motorcycle increases are far less than the original proposals as well.

“We are disappointed however that the Government has chosen not to increase the proportion of the ACC levy collected on petrol because we believe it is a fairer way of funding ACC.

“Gradually increasing the petrol levy would result in lower registration fees for all vehicle owners, while ensuring those who drive more pay for their increased risk of accidents. Other advantages of collecting more of the ACC levy on fuel is that no one can avoid paying their share and those with more than one car are not penalised. As many of our members tell us, they can only drive one car at a time,” says Mr Noon.

ENDS

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