Legislation that enables a regional fuel tax, initially only in the Auckland region, passed its third reading on 26 June 2018. The Land Transport Management (Regional Fuel Tax) Amendment Act 2018 provides a funding tool for regional councils to raise revenue to fund transport projects that would otherwise be delayed or not funded.

The Regional Fuel Tax applies from 1 July 2018 within the Auckland region.

A regional fuel tax:

  • applies to petrol and diesel and may be charged up to a maximum rate of 10 cents per litre, plus GST, for a maximum of 10 years.
  • is paid by fuel distributors when they deliver fuel to service stations and commercial users inside the region.

The legislation was referred to Select Committee for public feedback. Advice provided to the Select Committee, including the submissions, may be viewed here(external link). The legislation may be viewed here(external link). The Order in Council that puts in place a regional fuel tax in Auckland and the projects to be funded may be viewed here(external link).

The NZ Transport Agency is responsible for implementing the legislation. This includes the collection of the tax from fuel companies, the payment of rebates for exempt use, monitoring and enforcement. More  information is available here(external link).

Regional Fuel Tax Regulatory Impact Statement - Auckland Order in Council

Regional Fuel Tax Regulatory Impact Analysis for the Bill

Regional Fuel Tax Q&As [PDF, 221 KB]

Key documents relating to the policy development

Below are the key documents relating to the policy development of the Bill. Outlined in chronological order, the documents include briefing papers provided to the Minister of Transport, Ministerial letters, communication with Auckland Council and Cabinet papers and minutes. 

Date

Type

Document

1 November 2017

Briefing paper

Introduction of a regional fuel tax [PDF, 572 KB]

20 November 2017

Cabinet minute

Minute of decision: Auckland Urban Development and Transport Strategy: Next Steps [PDF, 54 KB]

22 November 2017

Ministerial letter

Letter to Mayor Phil Goff [PDF, 110 KB]

22 November 2017

Auckland Council letter

Letter to the Ministry of Transport [PDF, 247 KB]

30 November 2017

Briefing paper

Policy design: regional fuel tax for Auckland [PDF, 1 MB]

8 December 2017

Briefing paper

Draft Cabinet paper: Introduction of a regional fuel tax [PDF, 386 KB]

14 December

Auckland Council letter

Letter from Mayor Phil Goff [PDF, 101 KB]

20 December 2017

Cabinet Paper

Introduction of a regional fuel tax [PDF, 881 KB]

20 December 2017

Cabinet minute

Introduction of a regional fuel tax [PDF, 200 KB]

23 February 2018 

Briefing Paper

Matters for decision on the draft Land Transport Management (Regional Fuel Tax) Amendment Bill 2018 [PDF, 712 KB]

1 March 2018

Briefing paper

Land Transport Management (Regional Fuel Tax) Amendment Bill – Approval to Introduce [PDF, 268 KB]

3 March 2018

Ministerial letter

Land Transport Management (Regional Fuel Tax) Amendment Bill [PDF, 89 KB]

22 March 2018

Cabinet paper

Land Transport Management (Regional Fuel Tax) Amendment Bill: Approval for Introduction [PDF, 530 KB]

22 March 2018

Cabinet minute

Land Transport Management (Regional Fuel Tax) Amendment Bill: Approval for Introduction [PDF, 146 KB]

28 June 2018

 Regulatory Impact Analysis Regulatory Impact Analysis for the Auckland Council [PDF, 868 KB]