New Zealand’s Accident Compensation Corporation (ACC) has proposed lower levy rates and the introduction of risk rating for cars.

Rates put forward for next financial year include a 17% reduction in the average work levy on employers and the self-employed, and a 15% cut in the earners’ levy on the paid workforce.

It also proposes a 15% cut in the average motor vehicle levy, plus risk ratings for cars using methodology developed by Monash University.

Some critics fear only drivers who can afford newer cars will benefit from lower levies.

“It is true that newer vehicles are generally safer than older vehicles, and that they are usually more expensive,” the ACC said. “However, not all new vehicles are as safe as they could be and not all older vehicles are unsafe.

“Safety of a vehicle is an important part of the conversation people should have when buying.”

The ACC is seeking feedback from the public, with consultation running until 5pm on October 15.

Chairman Paula Rebstock says she is happy to work with the relevant industries on “ways to make levies fairer”.

ACC Minister Judith Collins has welcomed the proposed rate reductions, which “reflect positive gains made by the corporation across all its activities”.

Earlier this year Ms Collins signalled $NZ300 million ($263.81 million) of levy cuts for taxpayers next financial year.

The ACC provides New Zealand’s universal, no-fault accidental injury scheme.

For more information on the consultation, visit acc.co.nz/levyconsultation.