Road User Charges legislation changes
Last updated on
12/01/2012 4:48 p.m.
The Road User Charges Bill contains a package of proposed reforms to simplify and modernise the road user charges (RUC) system.
The Bill was introduced to Parliament on 25 November 2010, and received its second reading on 14 September 2011. The Bill was part-way through the Committee of the whole House debate when the House rose.
The Ministry will continue to update this page to reflect the progress of the Bill through the House.
Find out more about the Bill on the Parliament website
Read the Bill 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 Bill
Progress of the Road User Charges Bill
The Road User Charges Bill was introduced to Parliament on 25 November 2010.
The Bill received its first reading on 15 February 2011 and was referred to the Transport and Industrial Relations Committee (the committee) for consideration. The Committee called for submissions on the Bill following its referral and held public hearings in April.
The Committee reported back to the House on 24 May 2011 and recommended by majority that the Bill be passed.
The Bill received its second reading on 14 September 2011 and was part-way through the Committee of the whole House debate (the debate) when the House rose. The debate will recommence when the House resumes.
About the Road User Charges Bill
The Bill contains a package of proposed reforms to simplify and modernise the road user charges (RUC) system.
The proposed 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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