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Ministry of Transport

6 August 2025

Cabinet has agreed to a series of legislative changes to enable the transition of New Zealand's 3.5 million light vehicles to paying for our roading network through electronic road user charges rather than fuel tax.

The immediate next step is to reform the Road User Charges Act 2012 and its regulations. These changes will enable the private sector to offer different technological solutions to make it easier for users to pay for RUC.

Key legislative changes the Government is progressing include:

  • Removing the requirement to carry or display RUC licences, allowing for digital records instead.
  • Enabling the use of a broader range of electronic RUC devices, including those already built into many modern vehicles.
  • Supporting flexible payment models such as post-pay and monthly billing.
  • Separating NZTA’s roles as both RUC regulator and retailer to foster fairer competition.
  • Allowing bundling of other road charges like tolls and time of used based pricing into a single, easy payment.

The Ministry of Transport will soon lead a further market engagement process to identify how the Government can best support the development of new RUC services for the light vehicle fleet. 

Read the Transport Minister's statement here (beehive.govt.nz)(external link)