The Wireless

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08:09 am on 3 December 2013

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The Automobile Association says it's hugely disappointed at the Government's rejection of a proposed cut to the Accident Compensation Corporation levy on motorists from next year.

ACC last week reccomended a 17% reduction in the average work levy and a 15% cut in the earners' levy – which the Government has accepted.

It also suggested reducing the motor vehicle levy by an average of 15% next year, which would have led a saving of about $90 on annual car registration.

But ACC Minister Judith Collins says that will now happen in mid-2015 when the Motor Vehicle account will be fully-funded, despite the AA saying that motorists are paying record highs.