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Vehicle Risk Rating (VRR) removed from ACC motor vehicle levy

24 May 2019
2 minute read

Owners of passenger vehicles will see a change in the ACC levy component of their vehicle license (rego) from 1 July 2019


Owners of passenger vehicles will see a change in the ACC levy component of their vehicle license (rego) from 1 July 2019, when the vehicle risk rating (VRR) component is removed. 

VRR applied different levy rates to different makes and models of cars based on their safety ratings. 

The change to your rego will depend on the risk band of your vehicle. Owners of band 1 and 2 petrol-driven passenger vehicles (categorised as higher risk) will see their rego drop by up to $34; owners of lower-risk (band 3 and 4) vehicles will see it increase by approximately $28.  

The Government decided to scrap VRR in December 2018, following public consultation on ACC levies.  Reasons for removing it included a lack of clear evidence that VRR contributed to injury prevention or encouraged the purchase of safer cars, and that it placed a burden on low-income people and families who are generally less able to afford cars with better safety ratings, and so paid a higher VRR levy. 

ACC uses the levy collected through the rego and at the petrol pump to fund the cost of treatment and rehabilitation of injuries that occur in motor vehicle accidents on public roads. Last year ACC spent $547 million on motor vehicle related injuries

What change will you see on your rego

The tables below show how the removal of VRR will affect the ACC component of the rego (excluding GST).  

The ACC component for petrol only passenger vehicles

Band 2017/19 Levy (VRR) 2019/21 levy (no VRR) Effect of change

Band 1

$80.64 $46.06 -$34.60
Band 2 $53.53 $46.06 -$7.49
Band 3 $37.22 $46.06 +$8.82
Band 4 $18.00 $46.06 +$28.04

 

 The ACC component for non-petrol only passenger vehicles

Band 2017/19 levy (VRR) 2019/21 levy (no VRR) Effect of change
Band 1 $149.14 $104.65 -$44.49
Band 2 $122.03 $104.65 -$17.38
Band 3 $105.72 $104.65 +$1.07
Band 4 $86.50 $104.65 +$18.15

For any queries on VRR please call the contact centre on 0800 222 070. 

For more information on motor vehicle levies please visit:

Paying levies if you own or drive a vehicle. 

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