The New Zealand Government will cut Accident Compensation Corporation (ACC) levies this year and next, according to its latest budget.

Finance Minister Bill English told Parliament last week that further reducing the scheme’s levies is one of five fiscal priorities, along with returning the budget to surplus this year.

ACC levies will fall $NZ375 million ($348.1 million) this year, which could mean the average motor vehicle charge drops to about $NZ120 ($111.40) – about a third of the current fee.

Levies will be reduced by another $NZ120 million ($111.39 million) next year.

“Final decisions on the levies will be made after public consultation, but we anticipate the cuts will cover all levied accounts and therefore reduce annual costs for business, workers and motor vehicles owners,” Mr English said.

He says levies have already fallen by $NZ1.5 billion ($1.39 billion) since 2012.

The no-fault accident insurance scheme covers citizens and visitors to New Zealand, which has no common law right to sue for personal injury, except for exemplary damages.