Road user charges fee increases for trailers - 15 October 2010
Last updated on
12/01/2012 4:34 p.m.
This page contains questions and answers that were published in September 2010 when the 15 October 2010 road user charges (RUC) fee increases for trailers were announced. These apply only to trailers (vehicle types 24 to 43).
Questions and answers - road user charges (RUC) fee increases for trailers
Note: These apply only to trailers (vehicle types 24 to 43).
Why is there a further increase to RUC rates on 15 October 2010?
In March 2009, Cabinet agreed to increases in road user charges (RUC) over the period 2009/10-2011/12. The second of the RUC increases is scheduled to come into force on 1 October 2010.
The 2010 increases were gazetted on 19 August 2010 in order to allow the statutory 42 days notice required for increases to RUC rates.
This was intended to implement increases in all RUC rates, averaging 7 percent exclusive of GST. The specific increases were to vary across vehicles of different weights and types, but all rates were intended to increase.
Ministry of Transport officials have since discovered an error in the 2010 rates which affects standard distance licences for trailers.
The increases in RUC rates for trailers legislated only reflected the GST increase that is also scheduled for 1 October 2010, rather than also including the actual RUC increase.
A notice has been placed in the gazette (2 September 2010) notifying of the correct increases for standard 1,000 km licences for trailers and these will come into effect on 15 October 2010.
Does it affect all RUC rates?
No. Only the RUC rates for standard 1,000 km licences for trailers. Trailers are described in RUC legislation as vehicle types 24, 27, 28, 29, 30, 33, 37 and 43.
All other rates increases are as intended, including the rates of supplementary 50 km licences for trailers.
Does this change the 1 October 2010 increases to RUC rates?
No. All RUC rates will increase on 1 October 2010 as notified, but there will be a further increase for standard 1,000 km licences for trailers on 15 October to reflect the correct rate for these types of vehicles.
What will trailer operators be required to do in order to comply with two increases to RUC rates?
RUC licences for heavy vehicles will expire one month after the date of the first increase (on 1 October) which will be 1 November 2010.
RUC licences for trailers bought between 1 and 14 October 2010 will expire one month after the date of the second increase (15 October) which will be 15 November 2010.
Although this is inconvenient for those operators who purchase trailer licences during this period, they will benefit from a lower RUC rate than intended on licences that will be valid until 15 November.
Operators who renew their licences after 15 October 2010 will not be affected by the one month expiry period.
Will trailer operators lose money when their licence expires?
No. Trailer operators will receive an automatic refund in the form of a credit on any unused portion of the RUC licence when they purchase their new licence.
Why can’t the error be fixed and the RUC rates for trailers come into force on 1 October like the rest of the RUC rates?
It is not possible for the corrected rates for standard licences for trailers to come into force on 1 October 2010 because of the requirement to give 42 days notice of any increase to RUC rates.
What is the money from RUC spent on?
The revenue from RUC goes into the National Land Transport Fund which is used mainly for road construction and maintenance, along with other activities benefiting road users.