I recently registered for 12 months a large motorcycle and a diesel ute. I was surprised to find the ACC component of the ute's rego was higher than that of the bike. Why is this?
Malcolm Joynt, Ruawai.
At the risk of sounding patronising, I am assuming that you relicensed your vehicles, Mr Joynt. Briefly, registration is the process where you get number plates for your vehicle and the Government finds out who you are and where you live. Licensing is the process of acquiring a sticker to say that you have paid for the privilege of driving on New Zealand roads.
I am also assuming that your motorbike is petrol-powered. Petrol is taxed by the Government both at the pump, when you refuel, and as part of your relicensing fee. The tax is called an ACC levy, and is paid into the Government's Motor Vehicle Account. Currently, the petrol levy is 9.9c/litre of petrol.
Diesel is not taxed at the pump, as only a small proportion of diesel is used for powering vehicles that travel on public roads. The rest is for power generators, boats, trains and other industrial purposes.
To keep things fair, so that everyone pays a share of the Motor Vehicle Account, drivers or licensers of diesel vehicles pay their full share of the ACC levy in their licensing fee.