New Zealand’s Accident Compensation Corporation (ACC) has changed proposed cuts to levies on motorists following a public consultation.

But the state-owned, no-fault accident insurer will still recommend the Government make significant reductions next year.

It proposes cutting combined average motor vehicle levies by 40% and the average work levy on employers and the self-employed by 21%.

The earners’ levy paid by the employed and self-employed would fall 5%.

Motor vehicle levies are paid through petrol prices and vehicle licensing fees. The ACC had wanted to cut the petrol levy from 9.9 cents a litre to 5.9 cents, but it has changed this to 7.9 cents after feedback suggested it would disadvantage people who drive less.

To balance the smaller reduction, the ACC recommends bigger cuts to the licence levy.

The ACC also proposes risk ratings for vehicles, with owners’ levies tied to likely injury outcomes in crashes.

Chairman Paula Rebstock says owners of safer cars will benefit the most, but all owners will pay less. “This is a significant package of levy cuts we’re recommending, made possible by the fact the ACC scheme is now fully funded.”