Road User Charges system He pūnaha utu mō ngā kaiwhakamahi rori

The Government has extended the RUC exemption for heavy electric vehicles until 1 July 2027 (the exemption was previously set to end after 31 December 2025). Heavy vehicles are classed as those weighing over 3.5 tonnes, such as trucks and buses.

This extension gives heavy electric vehicle owners and operators sufficient time to plan for the transition, while setting clear direction that all vehicles need to contribute to the costs of maintaining the road network.

Heavy electric vehicle owners have been exempt from paying RUC since 2017. From 1 July 2027, owners of heavy electric vehicles will need to buy and hold a valid RUC distance licence. 

Heavy electric vehicles are exempt from paying RUC until 1 July 2027.

FEB 2023 

Extending fuel excise duty and public transport fares reductions, and reintroducing reduced rates of road user charges 

In response to continued high fuel prices placing pressure on household budgets, the Government has announced an extension to the temporary transport support measures: 

• Petrol excise duty remains at its current reduced rate of 45.02 cents per litre until 30 June 2023 

• Reduced road user charges rates have been reintroduced and apply until 30 June 2023. All rates are reduced by 36 percent. You can contact Waka Kotahi with questions about individual rates. 
• Public transport fares remain at half price until 30 June 2023. Community Connect (ongoing half-price public transport for community services cardholders) will commence on 1 July 2023 and half-price fares for Total Mobility users will continue indefinitely. 

The Ministry of Transport released a request for information (RFI) on to Government Electronic Tendering System (GETS) on 15 November 2025, with responses due by 12 December 2024. The RFI sought to understand submitters’ interest in providing modern, easy-to-use systems for vehicle owners to manage and pay for RUC, and the role the private sector can have in supporting a fleetwide transition of petrol vehicles into the RUC system.

The Ministry received 25 responses and an additional 3 parties engaged in meetings without submitting a separate response. Respondents included current NZ ERUC providers, over-the-counter retailers, overseas telematics providers, technology companies and fuel retailers. The full list of parties that engaged in the RFI is set out at the bottom of this summary. The Ministry met with 11 parties. 

There was strong interest in selling RUC using technology solutions including:

• in-vehicle technology and onboard telematics devices
• mobile apps that can either utilise manual inputs from users as well as, odometer photographs, or connection to in-vehicle technology for distance measurement.
• selling RUC at the pump via point-of-sale machines and/or apps. 

Parties interested in selling RUC electronically often proposed to bundle the sale of RUC with other vehicle related purchases and administration. For parties that envisage making capital investment to develop sale tools, interest is generally subject to ensuring that a minimum scale (in terms of number of customers) exists to achieve a return on investment. 

The idea of selling RUC without receiving a commission from the New Zealand Transport Agency (NZTA) but instead charging customers an admin fee to cover costs is interesting to some respondents. 

Almost universally, respondents noted that the requirement to have physical labels in vehicles should be removed to enable innovation and wider market participation.

Some respondents had comments on the role of NZTA. In summary these included:

• a desire for easier connection to NZTA systems, and concern that system connectivity is slow and may struggle to manage increased volumes from the transition
• a need for lower charges for checking RUC-related data with NZTA
• NZTA’s current role as a retailer combined with its other functions as regulator, RUC collector and agent procurer is seen as anti-competitive and may be a barrier to participating for some parties. 

The full list of respondents and other parties that the Ministry spoke to in relation to the RFI is set out below.

• AA New Zealand
• Austroads TCA
• Be-Mobile NV
• Bonnett Limited
• Carma Technology Corporation
• Caura Limited
• ClearRoad, Inc.
• Compass IoT Pty Ltd
• eConsultants Limited
• Emovis
• EROAD Ltd
• Fast NZ Limited
• IntelliTrac New Zealand Limited
• Invenco Limited
• Kapsch TrafficCom New Zealand Ltd
• Kora New Zealand Limited
• Navman Wireless Limited
• New Zealand Post Limited
• Nuonic Pty Limited
• Optimal Fleet Solutions Limited
• Picobyte Solutions Limited
• Power Trip Limited
• RUConnected Limited
• Smartrak Limited
• V-DAQ
• Vehicle Testing New Zealand Limited
• Waitomo Group Limited
• Z Energy Limited

We released the discussion document Te Huringa Taraiwa: Te arotake I te pūnaha utu kaiwhakamahi rori | ‘Driving Change: Reviewing the Road User Charges System’.  

The key topics in the discussion document include: 

• how RUC might be used to charge for greenhouse gas emissions and other factors beyond damage to the roads (like noise pollution and congestion); 
• how light electric vehicle (EV) owners can transition into paying RUC when the exemption for EVs ends on 31 March 2024, and; 
• how RUC’s compliance regime can be improved. 

Read more about the consultation, and read the discussion document and related documents, here.(external link)   

Consultation closed in April 2022.  

The Government announced that owners of light electric vehicles (EVs) and plug-in hybrid vehicles will start paying road user charges (RUC) when the current exemption expires at the close of 31 March 2024.

EV owners have been exempt from paying RUC since 2009. The exemption was put in place until EVs reached around 2 per cent of New Zealand’s light vehicle fleet. This point has now been reached so the government has decided to end the exemption.

The Government decided to create a reduced RUC rate for plug-in hybrid vehicles. A reduced rate reflects that plug-in petrol hybrid owners already pay some fuel excise duty when they buy petrol.

From 1 April 2024 owners of light EVs and plug-in hybrid vehicles under 3.5 tonnes will need to buy a RUC licence and display it on their windscreen.

They will be able to do this either online or in person at an NZTA agent. There will be a 2-month transition period to allow sufficient time for people to get registered in the RUC system without being penalised for unpaid RUC.

Read about what to pay, how and when on New Zealand Transport Agency’s website.(external link)

Read the Minister of Transport’s media release(external link).

Road user charges reduced between 21 April 2022 and 21 July 2022(external link)

Between 2013 and 2016, we commissioned Allen & Clarke to conduct evaluations of the Act in 3 stages.

2013 evaluation

The first evaluation investigated early progress towards the objectives of the changes that came about in the Act. They compared the effectiveness of the modernised and previous systems, and investigated whether any further adjustments were necessary.

The evaluation found changes to the RUC system had been relatively successful in creating greater equity, and that based on both industry and government perceptions, the new RUC system had more integrity.

2014 evaluation

The second evaluation included a particular focus on how the RUC system worked for light diesel vehicles.

The evaluation found that light diesel vehicles owners continue to have relatively limited knowledge of the RUC system, and identified that some owners overrun the distance covered by their RUC licences and that checking RUC compliance at the warrant of fitness test helps to ensure the integrity of the system.

2016 evaluation

The third evaluation took a summative approach, aiming to make definitive judgements on the success, or otherwise, of the changes made by the Road User Charges Act 2012.

The evaluation found that, as a whole, the Act was functioning effectively as a legislative basis for the RUC system.

The Act came into force on 1 August 2012, bringing about changes to how the RUC system worked and allowing the making of regulations to support the implementation of the legislation.

We assisted with policy advice on the legislation, including preparing Cabinet papers on key elements of the legislation. We also supported the Transport and Industrial Relations Select Committee in considering the proposed legislation.

Road User Charges Bill(external link)

The overall purpose of the changes was to:

• continue the RUC system by imposing charges on non-petrol vehicles for their use of the roads in proportion to the costs that the vehicles generate
• modernise and simplify the system
• improve compliance with, and the recovery of, RUC
• establish a framework for electronic management of RUC.

The changes reduced compliance costs, simplified administration and allowed Waka Kotahi NZ Transport Agency to take greater advantage of electronic technology for the administration and collection of RUC. They included:

• each vehicle having its own permanent RUC weight
• removing the time licence system
• simplifying the list of vehicles exempt from paying RUC
• improving the system to enable greater compliance
• introducing a framework for the electronic management of RUC
• establishing fairer offences and penalties especially for light diesel vehicles.

Road User Charges Act 2012(external link)

Since the Act came into force, regulations covering exemptions, RUC rates, infringements and other aspects have passed into law.

RUC regulations(external link)

The review also:

• considered the introduction of a diesel tax but determined that RUC continued to be the most appropriate charging system for diesel vehicles
• identified the opportunity to further harness technology, for example, an electronic collection system, and other administrative changes to reduce compliance costs and evasion.

Road user charges review released(external link)

The review led to the enactment of the Road User Charges Act 2012, which was introduced into Parliament on 25 November 2010.