It is measured by comparing the averages of the greenslip premium and weekly wages of vehicle owners. GST and levies is including in the average premium.
It is a known fact that different types of vehicles fall in different classes and therefore their premiums also differ. There are also other factors which affect the prices for greenslips charged such as driving history, age of drivers and so forth.
Now to come up with an average greenslip price means that the average of all passenger vehicles in NSW is used as it serves as a better measuring tool. In that sense the higher the ratio, the less affordable the greenslip premium.
According to the MAA Annual Report 2012-13, from the period 2000 to 2007 the affordability of the scheme was considerably enhanced due to stable premiums during this time period. From the year 2008 to 2013, greenslip prices for average passenger vehicles have increased by 37 percent.
But if CTP premiums are not affordable anymore the MAA has a challenge to revise the policy in order to make the premiums reasonable. Therefore the MAA works constantly with other parties to make sure the Scheme serves the purpose it is designed for.