1 October GST increases

1 October GST increases - transport fees and charges

On 1 October 2010, goods and services tax (GST) increases from 12.5 percent to 15 percent.

More information on GST increases. 

The GST Act 1985 requires government departments and agencies to charge increased fees and charges that incorporate the new level of GST.

This new rate will be applied to all transport related fees and charges contained in transport legislation.

Most transport fees and charges are collected by government transport agencies - the NZ Transport Agency, the Civil Aviation Authority, the Aviation Security Service and Maritime New Zealand to help cover the cost of the services they provide. These include: services such as aviation security screening, driver licensing, pilot licensing and oversight of safe ship management systems.

Each transport agency is adjusting their fees and charges to reflect the new GST rates and all will have information available on the new charges through their websites, by contacting them directly, and through the agents who collect fees and charges on their behalf.

Note: For most fees and charges, new GST rates taking effect from 1 October will not be reflected in existing legislation, meaning agencies will be charging a different rate to that set out in legislation. New GST adjusted fees will be advised by each transport agency on their websites or agencies can be contacted directly for information.

Information on updated transport fees and charges

Updated fees and charges information can be found from each transport agency.

• Civil Aviation Authority fees
• Land transport fees administered by the NZ Transport Agency
• Land transport fees administered by the Ministry of Transport
• Maritime New Zealand fees
• Aviation security fees

Questions and Answers

Are all transport fees and charges going up?

Yes – all fees and charges will reflect the increase in GST from 12.5 percent to 15 percent.

A small number of fees will increase slightly more and some slightly less as a result of rounding to enable ongoing cash payment.

What is the new amount for each new fee/charge?

For new rates please visit the website or contact the agency you pay the fee to.

Why are fees stated in legislation different to those being charged by transport agencies?

Most Acts and regulations containing fees and charges will not be amended to reflect the new GST rate. This means that the Act or regulation will still contain the fees and charges that applied before the GST increase.
To find the updated fees and charges that apply from 1 October, see the website of the agency which collects the fee or contact the agency concerned directly.

Why haven’t fees set out in transport legislation been amended so that the legislation aligns with the actual fees charged by agencies?

As GST increases affect hundreds of pieces of legislation, amending all legislation to coincide with GST changes would take a long time and involve considerable cost.

The government considers the most effective way to deal with increases is to amend legislation as required and allow agencies that administer fees and charges to advise of the new rates. 

What section of the GST Act has been applied to increase fees and charges and how does it work?

Section 78(3) of the Goods and Services Tax Act 1985.

Under this section of the GST Act, fees and charges contained in Acts or regulations will be deemed to increase automatically whenever GST increases.

This means that, when GST increases on 1 October, the fee or charge that appears in the Act or regulation will remain at the current level, but the amount charged will increase to incorporate GST at the new rate of 15 percent.  

How do I know I’m paying the right amount of GST?

The new rate of GST of 15 percent will automatically be applied to all fees and charges from 1 October. People can continue to pay fees and charges as normal.

How will refunds work?

Refund rates that are set in legislation do not automatically increase under section 78(3) of the GST Act. However, amendments to legislation have been made to increase refund rates for fuel excise duty and driver licensing fees to incorporate GST at 15 percent from 1 October.

Why are many transport fees and charges now set at odd amounts, rather than being rounded to the nearest whole number or the nearest ten cents?

Once GST is incorporated at 15 percent, many fees will be set at odd amounts. This is not expected to cause problems where fees are frequently paid electronically.

Fees that are commonly paid in cash need to be rounded to the nearest 10 cents to allow cash payment to continue. Most of these fees have been rounded down, so that agencies are not collecting more than the legislation allows. For a small number of fees, the legislation has been amended so that fees can be rounded up.