ACC is proposing a nearly 7 percent average reduction in the Work Account levy which if implemented would save businesses $40-50 million per year.

BusinessNZ Chief Executive Kirk Hope said ACC levies were a significant cost for many businesses and the reduction was welcome.

Mr Hope praised ongoing improvements to levy setting over recent years which have improved transparency and ACC accountability.

But he said there was room for improvement, notably in the motor vehicle account where motorcyclists, cyclists and electric vehicle owners are subsidised by other motor vehicle owners.

"Levies should closely reflect accident risk within the various ACC accounts to ensure transparent pricing and act as an incentive for safe practice."