EV owners facing ACC levy rise

EV owners are being hit with a large rise in ACC levies, but experts say it may not impact demand much.

The government has decided to adopt a wide range of levy increases, with EV owners having their ACC levy increase from $42.09 in the current year, the same as a petrol car, to $109.05 in the next financial year, says RNZ.

“At the same time, a petrol car lifts to $49.38.

“By the 2027/28 year, the levy for electric vehicle owners will be $122.24, twice the petrol rate.”

That follows the introduction of EV road user charges (RUC), which later included plug-in hybrids (PHEVs).

The EV RUC introduction brought protest from various people and organisations.

RNZ reckons an ANZ senior economist believes the RUC EV rise impact on demand will be small, adding EV demand is partly motivated by environmental factors.

ACC Minister Matt Doocey says an independent review of ACC is due to concerns which include increasing costs.

He expects levy changes will be introduced to the Motor Vehicle Account before July 1, 2025.

EVs and Beyond signalled the ACC changes in October this year.