Road user charges

Last updated on 8/05/2013 4:08 p.m. 

Road user charges help fund road construction and maintenance, along with other activities benefiting road users.  Changes to the road user charges system came into effect on 1 August 2012.   

About road user charges

Why do we pay road user charges?

All the revenue collected from road user charges goes into the National Land Transport Fund. This Fund is used mainly for road construction and maintenance, along with other activities benefiting road users. 

For example, during 2009-2012 expenditure on roads was distributed to:

  • State highways: 53 percent
  • Local roads: 22 percent
  • Road policing: 10 percent
  • Public transport: 10 percent
  • Other: 5 percent

How does the government decide how much we pay?

RUC rates are set according to what type of vehicle you drive, and how much it weighs. The heavier a vehicle is, the more damage it does to the road surface. Other factors are also considered, such as the number of axles and tyres your vehicle has. A four-axle truck with two double sets of wheels at the rear will cause less damage to a road, for example, because it spreads its weight across the ground more evenly than a truck with fewer axles and wheels. 

How do we pay our road user charges?

RUC can be paid to NZ Transport Agency via its website, or through its agents such as NZ Post shops, and the Automobile Association.  It’s a bit like car registration except that you do not get a reminder, and you have to pay it according to the distance on your odometer (or hubodometer for vehicles over 3.5 tonnes). It is enforced through NZ Transport Agency and Police checks.   

Where can I find more information about RUC?

You can look at the NZ Transport Agency website, or ring the help-desk at the RUC Contact Centre on 0800 655 644, Monday to Friday 8am to 6pm.

Diesel car users

Why isn’t diesel taxed at the pump like petrol?

An estimated 36 percent of diesel is used off-road, such as on farms, by manufacturing, industrial and commercial ventures, and boats. Taxing this would impose an unfair burden onto these sectors. Operating a refund system would be costly and cumbersome to administer and involve compliance costs without any related benefit.

Am I still better off driving a diesel car?

The average petrol car uses about 10 litres of petrol to cover 100 kilometres. Since the 1 October 2010 increases in petrol excise and GST, this results in total tax of $5.58, including GST.

The cost of RUC to cover the same 100 kilometres, under the current rates, is $4.43 for a two tonne vehicle (a small car) and $4.65 for a three tonne vehicle (a large car).

The benefits of running a diesel vehicle increase further once their superior fuel economy is taken into account. Fuel consumption tests generally give results between 20 and 30 percent better for a diesel engine car compared to the same model with a petrol engine.

Why not take diesel cars out of the RUC scheme?

An independent review of the RUC system considered this option carefully, but decided that, on balance the existing RUC scheme should be retained.

Taking diesel cars out of the RUC scheme would mean placing a tax on diesel.

An estimated up to 36 percent of diesel is used off-road, such as on farms, by manufacturing, industrial and commercial ventures and boats. Taxing this would impose an unfair burden onto these sectors. Operating a refund system would be costly and cumbersome to administer and involve compliance costs without any related benefit. A refund system would also potentially be susceptible to fraudulent claims. 

Read about the 2008/09 Road User Charges Review

Questions and answers relating to previous announcements

The following sets of questions and answers were published at the time that various announcements were made in the last few years.

RUC increases and the expiry of RUC licences for heavy vehicles (2009)

Read questions and answers that were published in 2009 when the notice of RUC increases and the expiry of RUC licences for heavy vehicles were announced. 

Exemption for light electric vehicles from RUC (2009)

Read questions and answers that were published in 2009 when the Exemption for light electric vehicles from RUC was announced.

Fee increases for trailers (October 2010)

Read questions and answers that were published in 2010 when the 15 October 2010 fee increases for trailers were announced. 

Fee increases for RUC and fuel excise duty on petrol (October 2010)

Read questions and answers that were published in 2010 when the 1 October 2010 fee increases for RUC and fuel excise duty on petrol were confirmed.

Further information on RUC

For further information on RUC look at the NZ Transport Agency website, or ring the help-desk at the RUC Contact Centre on 0800 655 644, Monday to Friday 8am to 6pm.