The State Government will wind down the Motor Accident Commission, with its road safety activities to be delivered by SA Police and other agencies such as the Department of Planning, Transport and Infrastructure and the Office for Recreation and Sport.
Treasurer Rob Lucas said the move was a ‘natural consequence’ of the former Labor Government’s decision in 2014 to privatise the provision of Compulsory Third Party (CTP) vehicle insurance in South Australia – which had been MAC’s core function.
Mr Lucas reassured South Australians the government’s unwavering commitment to road safety remained unchanged, and MAC’s total current funding of about $11 million for advertising, research, partnerships and sponsorships will be maintained.
All MAC partnerships and sponsorships, such as the rescue helicopter, will be rolled over at their existing levels to June 2020 – whilst guaranteeing the overall level of funding will be protected.
“This sensible move is a natural consequence of the former Labor government’s decision to sell-off the Motor Accident Commission’s CTP insurance business which, effectively, stripped it of its core function,’’ said Treasurer Lucas.
“MAC ceased writing new CTP insurance policies from July 1, 2016 but has remained responsible for managing a small backlog of claims issued up to and including June 30, 2016.
“With that case load reducing, we see great value in now transferring the delivery of its remaining road safety initiatives to other arms of government already playing an important role in this space, such as SA Police and DPTI.
“Critically, this will ensure we can continue to deliver the same high-quality road safety initiatives to protect and educate South Australians in safe road use.”
This restructure will take effect from July next year.
As soon as the MAC has finalised its role in managing the remaining claims, it is intended to abolish the MAC.