From 1 July, most motorists will see their light vehicle licence (rego) fee cut after ACC Minister Nikki Kaye yesterday announced changes to the annual levies.
Fees for all risk bands of light petrol and diesel vehicles will reduce (see tables below). So owners whose vehicles remain in the same risk band will save at least $42.92 on an annual rego (for the safest petrol vehicles) and up to $81.86 (for the riskiest diesel vehicles).
While most vehicles will remain in the same risk band post-1 July, some may move into a different band. Depending on the new band these vehicles fall into, owners could save – or pay more – ACC levy.
The changes to risk bands are a result of improvements to the data ACC uses to calculate how relatively risky some vehicles are. The crash database used to assess the relative risk of each vehicle has been made more robust, the system is better at identifying when improvements were made to models of cars, and better at recognising cars with different names that are essentially identical.
To see how the changes will affect your rego costs, you need to calculate your vehicle’s 2015 and 2016 fees:
If your licence isn’t due for renewal until 1 July, you don’t have to do anything – your new rego will include the 2016 ACC levy.
If your licence comes up for renewal between now and 1 July, and the new fee is lower, you should only renew for the minimum period to take you beyond 1 July, otherwise you’ll be paying more than you need to.
If your licence comes up for renewal between now and 1 July and your ACC levy is going to increase, you should renew your rego for 12 months now to keep your existing lower rate.
The ACC levy changes in full:
Light petrol vehicles:
- Band 1 was $158.46 now $84.98, saving $73.48
- Band 2 was $123.46 now $61.87, saving $61.59
- Band 3 was $103.46 now $48.65, saving $54.81
- Band 4 was $68.46 now $25.54, saving $42.92
Non-petrol vehicles (including diesel and battery-electric):
- Band 1 was $241.13 now $159.27, saving $81.86
- Band 2 was $206.13 now $136.16, saving $69.97
- Band 3 was $186.13 now $122.94, saving $63.19
- Band 4 was $151.13 now $99.83, saving $51.30