$387m in ACC levy cuts confirmed

ACC Minister Judith Collins. File photo / Mark Mitchell

ACC Minister Judith Collins has confirmed $387 million worth of ACC levy cuts from April next year.

Ms Collins said the cuts were thanks to the corporation's astute management, outstanding investment performance and dedication to effective rehabilitation.

Prime Minister John Key said the cuts were in line with the ACC's recommendation. However the corporation recommended cuts totalling more than $500 million.

Ms Collins said that was because while the Government had accepted the corporation's recommendations around the workers and earners account it had chosen not to accept its recommendation around cutting the motor vehicle account.

Ms Collins said the Government had decided against picking up the recommendation around the motor vehicle account because it was not yet fully funded.

Fully funded refers to whether a particular account has sufficient funds to meet the costs of all existing claims on its books over the life of those claims.