New Zealand’s Accident Compensation Corporation (ACC) has recommended significant levy cuts for employers and workers next financial year, plus a 5% cut for all car owners.

The state-owned no-fault accident insurer says the average work levy, paid by employers and self-employed people, could be cut 17%.

The earners’ levy, paid by everyone in the workforce to cover non-work-related injuries, could fall 15%.

Chairman Paula Rebstock says the cuts are made possible by the ACC’s improved financial situation. It is on track to be fully funded by 2019.

“Although we achieved a surplus last year, the scheme’s liabilities still exceed its assets by $NZ2.3 billion ($2.05 billion). But we’re confident our recommended levy cuts are sustainable.”

The recommendations are now with ACC Minister Judith Collins, who will announce the rates this month.

The work and earners’ account levies come into effect on April 1, followed by the motor vehicle levy on July 1.

This year’s average work levy is $1.15 per $100 of liable earnings. The earners’ levy is $1.70 and the average motor vehicle levy will be $NZ330.68 ($295.15) from today.