For the 2017 to 2019 levy period, we’ve received your feedback on:

  • keeping the levy paid as part of your license (rego) fee the same for petrol-driven motorcycles
  • decreasing the levy paid as part of your license (rego) fee for non-petrol-driven motorcycles.

We're only proposing a decrease for non-petrol motorcycles to balance the proposed decrease in petrol levy. This means both petrol and non-petrol motorcyclists will benefit from lower levies in some way.

Motorcycle levies

Your motorcycle levy is part of the Motor Vehicle levy and helps cover the cost of accidents on public roads involving motorcycles.

You pay for your levies the same way as other motor vehicle owners, through:

  • petrol at the pump – currently at 6.9 cents per litre
  • as part of your vehicle license (rego) fee.

For non-petrol vehicles, eg diesel, your whole levy is paid through your rego.

How levies work

Motorcycle Safety levy

The licensing (rego) fee for motorcycles also includes a $25 Motorcycle Safety levy. This funds motorcycle road safety initiatives.

Keeping motorcyclists safe on our roads

No-fault cover

The levies you pay aren’t based on who’s at fault in an accident. No-fault means that no matter what you were doing or whether your actions or someone else’s caused the injury – you’ll be covered by ACC.

What does no-fault mean

Paying higher levies than other vehicles

In 2010/2011 we looked at the number of claims, severity of injuries and the cost of treatment and ongoing support for motorcyclists involved in accidents. We then changed the motorcycle levy to help reflect this data and the relative risk of injuries involving motorcycles compared to injuries involving other vehicles.

Levies are now spread more fairly across all vehicle owners, but motorcycle accidents are still largely subsidised by other motorists.

Motorcyclists are subsidised by other motorists

The amount of motorcycle levies we collect doesn’t cover the full cost of motorcycle injuries – including those that need lifelong support.

Based on past data, we estimate it will cost $131 million to cover these injuries for 2017 to 2018. Motorcycle levies cover $28 million of this cost, less than 22%, and the other $103 million is covered by other motorists.

If motorcyclists paid the entire cost to cover their injuries, the motorcycle levy part of your rego – excluding the motorcycle safety levy – would look something like this:

Vehicle type

Current levy

Levy based on actual cost of claims

Mopeds

$99.33

$360

Motorcycles 600cc or less

$297.91

$1,285

Motorcycles over 600cc

$397.18

$2,369

Instead of charging motorcyclists such a high cost, we’re proposing to keep the levy the same. This means we can continue to collect the same amount in levies without asking other vehicle owners or motorcyclists to pay more.

Higher risk means higher cost

Motorcycling brings a higher level of risk per kilometre travelled compared with other modes of transport. The cost of motorcycle accidents is extremely high because of the severity of most injuries:

  • a motorcycle is less visible to other people on the road, increasing the chance of an accident 
  • motorcyclists have less protection than other road users, so their injuries tend to be more serious and need more support.

Engine size in motorcycles

Data from past claims shows a strong link between the engine size of a motorcycle and the cost of injury. This is why we levy motorcycles by engine size.

The percentage of costs to cover injuries (relative to a car) are much higher the larger and more powerful the engine.

Vehicle type

Estimated claims cost relative to cars for 2017 to 2019

Average car

100%

Mopeds

339%

Motorcycles 600cc or less

1,151%

Motorcycles over 600cc

2,102%

Feedback from last year

We know the motorcycle fleet has changed a lot over the past few years. We get lots of feedback on safety and how levies could better reflect this – so we’re keen to revisit these conversations and hear about any other ideas you might have.

Collecting and using data

Many people asked about the data we collect and how we use it to set levies. We currently only use ACC data to set levies, but we’re working with Police and the Transport Agency to combine our data to make one source of truth.

This will help us build a complete picture of motorcycle accidents and will be available to the public – you’ll be able to access the data for your own analysis or as a tool for safety initiatives.

Our proposed changes

These changes take into account our proposals to decrease the petrol levy and to keep the Motorcycle Safety levy (paid as part of your rego) at $25. This means both petrol and non-petrol motorcyclists will benefit from lower levies in some way for the 2017 to 2019 levy period.

Lower levies at the petrol pump

Petrol motorcycles

We’re proposing to keep the amount paid through your rego the same for petrol-driven motorcycles.

Vehicle type

Current levy (no change)

Mopeds

$99.33

Motorcycles 600cc or less

$297.91

Motorcycles over 600cc

$397.18

Excluding the motorcycle safety levy.

Non-petrol motorcycles

As we’re also proposing to decrease the petrol levy, we want to balance this for non-petrol driven motorcycles by decreasing the amount they pay through their rego.

Vehicle type

Current levy

Proposed levy for 2017 to 2019

Mopeds

$131.23

$126.14 (3.9% decrease)

Motorcycles 600cc or less

$329.80

$324.72 (1.5% decrease)

Motorcycles over 600cc

$429.07

$423.99 (1.2% decrease)

Excluding the motorcycle safety levy.

Find out more

Motorcycle levies proposal

View related proposals

Lower levies at the petrol pump
Keeping motorcyclists safe on our roads

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