Everything's on-track for a significant reduction in ACC motor vehicle levies from July 1, says ACC Minister Nikki Kaye.

From July 1, the average motor vehicle levy, including the annual licence levy and petrol levy, will reduce from $330 to $195.

ACC motor vehicle levies will be reduced from July 1 this year.

Nikki says this reflects the improved financial position of ACC's Motor Vehicle Account, and will return around $438 million to levy payers.

ACC will also introduce risk rating in July, which means annual licence levies for cars will reflect how well each car protects its occupants and other road users in a crash.

'This is fairer, and recognises that owners of safer cars, which are less likely to cause injuries, should pay lower levies,” says Nikki.

'However, all car owners will pay reduced licence levies from July.

'Cars make up the majority of New Zealand's motor vehicle fleet of over three million vehicles. Under risk rating, cars manufactured before December 2011 will be rated based on data collected about their safety performance in real world crashes.”

Nikki adds: 'There's been discussion about how newer model cars are rated, given there's less real world crash data about these vehicles.

'Following public consultation and advice from ACC and MBIE, I've decided that the rating of cars manufactured after December 2011 will be based on a safety assessment of the vehicle's design and its performance in simulated crash testing.”

ACC will publish information in the near future, showing the levies payable on specific makes and models of cars.

Nikki says the changes ACC is making will result in fairer levies and more money in the pockets of many New Zealanders.