ACC adds to motorists’ woes

Newshub reports that, on top of increasing fuel prices, due to both increased levies and global price increases, ACC has decided to increase its levies, in particular by adding to the cost of fuel. quote:

The Accident Compensation Corporation (ACC) has proposed higher levies for motorists in New Zealand, which could see petrol prices increase by almost 2 cents a litre.

The proposal includes an increase of 1.9 cents per litre for petrol, which is part of an overall 12 percent increase in the average motor vehicle levy (including petrol and registration). end quote

12 per cent. On top of everything else. Unbelievable. quote.

It comes as New Zealanders prepare for the petrol tax to increase by 3.5 cents per litre on Sunday. Prices have reached a new high of $2.40 per litre in some areas of New Zealand, according to PriceWatch, and many Kiwis are struggling to cope.  end quote.

Fuel prices are increasing at the moment due to both levies imposed by the government and the higher price of Brent crude. This is just another body blow to motorists and most of us are motorists.

Remember how, a few months ago, I predicted $2.50 a litre? Even I didn’t think it would happen this fast. quote.

ACC Board Chair Dame Paula Rebstock says the proposed levy increases would substitute the growing number of claims for injuries in New Zealand which have increased by 6.4 percent, with “more people than ever needing our support”.

Alongside increases to motor vehicle levies, the ACC has proposed decreasing the average levy for employers from $0.72 to $0.67 – a 6.9 percent decrease. But earners’ levy on income would be increased 2.5 percent from $1.21 to $1.24.

New Zealand has experienced a period of economic growth over the last few years, Dame Rebstock says, which has influenced people to expose themselves to “greater risk”. This has resulted in increasing medical costs and “increases in weekly compensation claims.”

Other factors that have influenced the proposal are “increased costs for care and support workers resulting from the pay equity settlement agree by Government,” says Dame Rebstock, as well as the “introduction of free doctor visits for under-14s”.

Despite the cost pressures, Dame Rebstock said the ACC’s investment in injury prevention and internal changes have had a “positive impact”. She said the past two years have seen higher investment returns than forecast.

“This is helping us to manage increasing costs, and, with the exception of the motor vehicle account which is slightly higher than anticipated, we have kept levies from increasing as much as we thought in 2016,” she says. end quote.

Funny, isn’t it. Get a socialist government and every government department or SOE piles on the increases like they are going out of fashion. With almost full employment, ACC has never had so much money, and by their own admission, their investments are doing well. (You can thank Donald Trump for that.) But off they go, charging like wounded bulls, just because they can. And they know this government will be sympathetic, unlike the last one that forced ACC to reduce its levies.

There is just no end to the woes with this government. All this will mean is more pay demands and more strikes. Those that have settled for pay agreements are now going to see them whittled away by the dramatic increase in living costs because fuel price increases affect everything.

We shouldn’t be surprised though. This is what always happens with socialist governments. They punish their own voters most because they know that their faithful voters will never go anywhere else. With rents rising astronomically and now the price of everything else set to increase sharply, times are going to be very tough in New Zealand. And no amount of fairy dust is ever going to fix it.


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Accountant. Boring. Loves tax. Needs to get out more. Loves the environment, but hates the Greens. Has been called a dinosaur. Wears it with pride.

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