The Government is mindful of the need to be fair, while collecting sufficient levy payments to cover the cost of injuries now and for the lifetime of motor vehicle claims, Every approach has its advantages and disadvantages for different levy payers. Even though you can only drive one vehicle at a time, this does not rule out the possibility that others may have access to these vehicles when you are not using them. The motor vehicle levy you pay covers not only you as a driver, but also anyone else who may drive your vehicle, and any passengers and other road users, in the event of an accident. The levy goes into the Motor Vehicle Account which funds all accidents that occur on a public road. If your passenger is injured in a crash, the levy that you paid on that vehicle essentially provides funds to cover their injury-related costs as well as your own.
The current levy system, where part of the levy is collected through petrol sales and is consequently linked to the distance travelled, also reduces the total levy that would otherwise be payable by a person, such as yourself, who owns multiple vehicles.
The Accident Compensation Amendment Act 2010 allows ACC to look into using other types of approach in the future, such as charging a levy or providing discounts based on such factors as the age of the vehicle or the injury history of the owner. This Govemment's current ACC work programme also includes exploring wider reform options in the Motor Vehicle Account and we will be looking to further that programme of work this year.
You have made a choice to own several vehicles, and the licensing requirements are well known. In the same way, if you own more than one property, there is no rebate on the rates and other charges on those you are not currently occupying. Unlike property costs, though, you are able to register your vehicle for part of a year. That way, if the vehicle is not going to be used for an extensive period, you can avoid some levy costs. The minimum period of exemption is three months and the maximum period is 12 months. There is no charge for exemptions and they can be granted by phoning the New Zealand Transport Agency's customer service on 0800 108 809. Exemptions can be extended indefinitely. However, you would need to re-register your exempt vehicle prior to using it again on public roads.
Thank you again for writing to me. I hope my reply has addressed your concerns.
Yours sincerely
Hon Dr Nick Smith
Minister for ACC
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