Time of use charging schemes

On 11 November 2025, Parliament passed the Land Transport Management (Time of Use Charging) Amendment Bill. The Bill will come into force in November 2026.

The Bill enables local authorities to propose time of use charging schemes. Proposals for schemes will be developed by boards comprised of representatives from local government and the New Zealand Transport Agency (NZTA) and need to be consulted with local communities. If a scheme is then approved by the Minister of Transport, the boards will operate the schemes.

How do time of use charging schemes work?

Time of use charging schemes are a way to improve traffic flows and shorten journey times. They work by charging road users at certain times or locations, depending on how busy the roads are.

During peak times, when the roads are busiest, the charges are higher. During off-peak times, when there are fewer cars on the road, the charges are lower or there are no charges.

The idea behind time of use charging schemes is simple. By making it more expensive to drive during busy times, people are encouraged to change their travel habits, so there are fewer vehicles on the roads at the busiest times. For example, if you usually travel during rush hour, and you don’t have to, you might choose to leave earlier or later to avoid the higher charges. This can help to spread out the traffic, making the roads less congested.

Time of use charging is similar to congestion charging, but it has a broader focus. While congestion charging targets specific roads to reduce volumes and travel times, time of use schemes aim to improve traffic flow across an entire network, enhancing reliability and productivity overall.

What are the benefits?

The overarching goal of a time of use charging scheme is to make travel more efficient. They do this by:

• Reducing congestion - by encouraging drivers to travel at different times, time of use charging schemes can reduce the number of cars on the road during peak times.
• Supporting faster travel times - less congestion means that traffic is flowing freer, making travel faster for everyone.
• Making better use of our infrastructure - spreading traffic out more evenly over time means we are making better use of our roads and could delay the need to invest in additional capacity.

What happens next?

The Bill does not come into force until November 2026. During that time, local authorities will be able to consider whether they wish to propose a scheme for their region.

The new legislation will be supported by regulations which will be developed and put in place before the Bill comes into force. More details on the work programme to support the development of regulations will be available later.