Most NSW motorists can expect a compulsory third party (CTP) refund next year as part of government reforms aimed at making the scheme fairer and more affordable.

Finance, Services and Property Minister Victor Dominello says about $300 million will be returned to motorists, in addition to the $120 average saving under the new scheme, which takes effect on December 1.

“Taxi drivers will be major beneficiaries, with significant refunds put back in their pockets,” he said.

Many NSW motorists renewing or buying CTP insurance this year have paid too much, because prices were based on the previous higher-cost scheme.

Sydney motorists, who pay the highest premiums in NSW, will receive the largest refunds averaging $70, while country motorists will receive refunds of about $30.