New Zealand’s Accident Compensation Corporation (ACC) will cut levies by about $NZ300 million ($249 million) in 2014/15, rising to $NZ1 billion ($830 million) from 2015/16.

Continued performance improvements have allowed further reductions after the $NZ630 million ($523.2 million) drop this financial year, according to ACC Minister Judith Collins.

The series of cuts will reduce levy rates by about 40%, she says.

The Government is working with the ACC board to review its funding policy and improve the governance and transparency of levy-setting, according to Ms Collins.

“Already there is general consensus that the improved performance of the ACC scheme makes substantial levy reductions appropriate and sustainable. Therefore, I am signalling a likely further reduction from 2015/16.”

ACC levies will be set later this year.