Road User Charges legislation changes
Last updated on
29/02/2012 10:41 a.m.
The Road User Charges Bill was passed on 14 February 2012. It will replace the Road User Charges Act 1977 with a new Act; the Road User Charges Act 2012. The new Act contains a package of reforms to simplify and modernise the road user charges (RUC) system.
The new Act will come into force no later than 1 August 2012. This allows time for regulations to be made that will support the Act and for the NZ Transport Agency (NZTA) to make the necessary changes to its administrative and IT systems.
Find out more about the Act on the Parliament website
Read the Act on the Parliament website
Read the Committee's report back to the House (Parliament website)
Read about consultation on the development of regulations under the Act
About the Road User Charges Act 2012
The Act contains a package of reforms to simplify and modernise the road user charges (RUC) system.
The reforms represent the most significant changes to the RUC system since it was introduced in 1978 and will make the system easier to understand and fairer for all those who pay RUC.
The reforms comprise:
- changing the current system whereby operators nominate a licence weight for RUC purposes to one where each vehicle will have its own permanent RUC weight
- removal of the time licence system and modernisation of the list of vehicles exempted from road user charges
- improvements to the system to enable greater compliance
- an improved regulatory framework for electronic management systems
- fairer offences and penalties especially for light diesel vehicles.
Changing the definition of licence weights, removing the confusing time licence system and simplifying the list of exempted vehicles will all reduce compliance costs for businesses and simplify administration processes for industry and government. The NZ Transport Agency will also be able to take greater advantage of modern technology in administering RUC payment channels.
Government concern about RUC evasion - conservatively estimated by officials at $30 million a year - will also be addressed. Currently honest payers of RUC are subsidising those who evade payment. Changes to legislation will remove a number of evasion opportunities and encourage timely payment, making the system fairer for all.
A review of the RUC cost allocation model will precede legislative changes. This review will ensure that RUC is allocated appropriately between users and make the model simpler and more transparent.
Changes to the RUC system already implemented include the requirement to give six weeks’ notice of RUC increases and legislation enabling electronic distance recording and electronic display of RUC licences.
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