A levy to fund a no-fault insurance scheme in Western Australia will not be used as a revenue raiser by the State Government, according to Premier Colin Barnett.

The Government last year released a discussion paper on the scheme to cover people catastrophically injured in road accidents.

The paper suggests funding the no-fault insurance by imposing an annual charge of $109 on motor vehicle registration.

In a response to the paper, the RAC said it believed the suggested annual charge was excessive.

WA RAC spokesman Pat Walker said it was significantly higher than the amount paid in other states.

"While we recognise that the introduction of the CTP proposals for no-fault catastrophic insurance cover are an important social issue and it is one that our members support," he said.

"We have real concerns about the costs and that's based on independent expert advice and also the work of the Productivity Commission."

But the Premier said the fee had yet to be determined, but he expected it would be around $100.

"Once introduced, what the premium will be, will depend on how the scheme is defined, in terms of eligibility, level of benefits and the like," Mr Barnett said.

"Also, there are differences here. We have a bigger country area. We have higher levels of fatalities and crashes on country roads, so a whole lot of issues will impact on that."

The RAC has also expressed concern that the levy could be used to raise additional revenue by the Government.

"We have genuine concerns that this figure does not reflect the true cost of introducing such a scheme, and also that it incorporates an element of double charging and cost shifting," Mr Walker said.

Mr Barnett said money raised from any levy would be used only to fund the scheme.

"This is about providing long-term and consistent protection [to people] ... severely injured in vehicle accidents," he said.

"I think, no-one wants to pay more but we're certainly not looking to generate any revenue other than the cost of providing that care for people who are injured."

Just when and how the scheme would be introduced remains unclear.

Cabinet has yet to make a decision but the Premier has reiterated his belief that the scheme will be approved.

Mr Barnett told 720 ABC Perth that the Government was awaiting the full response to the discussion paper.

"It will then be considered by Cabinet," he said.

"All going well, that will probably form part of the budget this year."