New Zealand motorcyclists are putting registrations on hold in response to upcoming Accident Compensation Corporation (ACC) levy changes, highlighting a dispute over how motorcycle injury costs are shared across the vehicle fleet. The actions come as ACC prepares to change motorcycle levy bands and increase the share of motorcycle injury costs funded directly by riders from mid-2026, changes that many in the riding community say are not supported by clear risk data.
From July 1, 2026, ACC will move from a two-band motorcycle levy structure to three engine-capacity categories:
NZ Transport Agency Waka Kotahi explained that under the new schedule, annual ACC levies for large petrol motorcycles over 750cc will be $624.93, with electric or diesel models paying $638.36. Medium motorcycles will be charged $442.18 for petrol and $455.61 for electric or diesel. Small motorcycles will pay $311.70 and $325.13, respectively. For licences beginning between July 1, 2025, and June 30, 2026, motorcycles 600cc or less are charged $321.17 (petrol) and $334.85 (electric or diesel), while motorcycles over 600cc pay $428.19 and $441.87. A 500cc motorcycle in the 2024-25 year would have been charged just under $300. All motorcycles also continue to incur a separate $25 motorcycle safety levy, which will remain at that level from July 1, 2026. The motorcycle levy changes sit within a wider package of adjustments for multiple vehicle classes across the 2025-2028 levy period. The revised banding and higher top-end levies may affect affordability perceptions and could influence take-up of comprehensive cover among higher-capacity riders.
The Motorcycle Advocacy Group, which has been organising protest rides and online campaigns, contends that the revised settings will raise costs for many owners without sufficient supporting evidence on relative risk. Group spokesperson Richard Tohu said the overall amount that motorcyclists will pay is set to rise over the current levy cycle. He said the cost of registration was on track to increase by 68% by 2026 for some riders. “It’s just a lot of money. Everybody is feeling the crunch, and they can’t justify the increases,” Tohu said, as reported by RNZ.
Tohu also questioned whether engine size is an appropriate proxy for claims experience. “It’s not that we just want to get away with not paying money; we need to see that it’s justified. Show us the data. You’re saying it’s risk. We all know the bigger the engine does not equal higher risk,” Tohu said. He said repeated requests to meet with officials to review the underlying data had not led to a formal discussion. “They won’t talk to us, nobody will meet with us. So, we are advising our members to put your vehicles on hold and stop paying them. We need to try and get them to come to the table,” he said. The group’s call for transparency on underlying police and claims data echoes broader sector interest in how ACC calibrates levies relative to observed frequency and severity trends.
As part of its campaign, the Motorcycle Advocacy Group is encouraging members to place registrations on hold to avoid paying the revised levies. A vehicle with its registration on hold cannot be legally used on public roads. Tohu said the group is aware that some riders may continue to use their motorcycles even when not fully licensed. “We don’t condone riding your motorcycle while it’s not legally registered to be on the road … but we can’t be responsible for what thousands of people are already doing and might choose to do,” Tohu said.
Tohu said that for some riders the enforcement consequences may be weighed against the new levy levels. “If you ride an unregistered, unlicensed vehicle and you get caught, it’s a $200 fine plus demerit points. If you’re faced with paying $600 [for registration] there is going to be a lot of people out there that will take that risk,” he said. He said a Facebook group opposing the changes was approaching 9,000 members. “A couple of weeks ago we were 5,000 members. Since our protest ride on the 28th, it’s just taken off,” he said. From an insurance perspective, any increase in the number of unregistered or intermittently registered motorcycles on the road may complicate risk assessment, coverage discussions, and claims handling, particularly where registration status is a condition of cover.
Recent data from NZ Transport Agency Waka Kotahi indicates that motorcycle registrations have already weakened. Between the March 2025 and March 2026 years, first-time motorcycle registrations fell 9.8%. The figures relate to new registrations rather than the total number of motorcycles in the national fleet. Over the same period, first-time registrations for passenger cars rose 2.7%, pointing to differing responses between motorcycles and cars to broader cost, risk, or ownership considerations. If levy changes further dampen new motorcycle registrations, insurers may see slower growth or potential contraction in motorcycle portfolios, even as car ownership and motor insurance demand continue to expand.
ACC states that the changes are intended to align levy settings more closely with claims experience and cost allocation across vehicle types. ACC deputy chief executive, corporate and finance, Stewart McRobie, said motorcycle injuries represent a substantial share of road crash costs relative to the size of the motorcycle fleet. “ACC forecasts the lifetime cost of motorcycle injuries at around $266 million per year in the current levy cycle. While motorcycles make up 4% of the vehicle fleet, motorcycle accidents represent 25% of the cost to ACC of all injuries from road crashes. Through the levy system, motorcycle owners currently pay 28% of the total cost to support people recovering from motorcycle accidents. The remaining 72% is paid for and therefore subsidised, by the levies collected from other vehicle owners,” McRobie said, as reported by RNZ.
According to ACC, crash data from police and NZ Transport Agency systems shows that 37% of injury claims for riders and pillion passengers arise from single-vehicle crashes where police assessed rider actions as a contributing factor. McRobie said the current levy round is intended to “align the proportion of levy contribution from motorcyclists to the proportion of motorcycle crashes that only involved the motorcyclist – single vehicle crashes,” and that “it’s important that ACC levies are fair and that the amount contributed by levy payers reflects the level of risk.” McRobie added: “Additionally, accidents involving motorcycles often also result in more severe injuries, which are more costly to treat.”
