Find out more about the changes to the administration fees for motor vehicle registration and licensing, and road user charges that came into effect on 1 October 2012.
Why change administration fees?
An independent review of the administration fees associated with road user charges and the registration and annual licensing of motor vehicles was carried out.
The review found that under the old system administration fees were not covering the costs of providing the services they related to.
The government approved the review’s recommendation to develop a new structure for setting and managing the fees.
Why was the review carried out?
Administration fees had not been comprehensively reviewed since the early 1990s. Since that time, there had been considerable advances in technology as well as changes to regulation.
How does the fee structure work?
The fee structure sets administration fees that are fairer, more transparent and better aligned to the actual costs of providing the service they relate to. It ensures, wherever possible, users who primarily benefit from specific activities pay the cost of the service provided.
What is included in the new fee structure?
- Adjustments (reductions in most cases) to existing administration fees to better target and align the fees with the actual cost of providing the service.
- Introduction of specific fees for some transactions that did not previously have an administration fee applied to them.
- Introduction of variable fees to reflect the different costs associated with each payment option.
- The annual $5.67 million cost associated with activities that protect the land transport tax base and maintain the integrity of the land transport system will now be funded from the National Land Transport Fund. This removes these costs from the general licensing administration fees.
What are the new fees?
This table shows the existing administration fees and the new fees resulting from the review (PDF, 66kb). The highlighted columns indicate which transactions now have an administration fee applied.
Are fees cheaper when you pay online?
There is a 30% discount on the administration fees for registering a motor vehicle, or for purchasing a motor vehicle licence or road user charges online. This is to encourage users to pay via the internet.
This allows the NZ Transport Agency to achieve additional cost savings which can be passed on to users in the future.
When will the NZ Transport Agency next review fees?
The NZ Transport Agency will review motor vehicle registration and licensing and road user charge administration fees in mid 2013. The NZ Transport Agency will report to government on its findings of this review by December 2013.
What services will no longer be covered by administration fees?
The cost of activities that maintain the integrity of the land transport system have been removed from administration fees and instead will be covered by the National Land Transport Fund. It is considered more appropriate that these costs are met proportionately by all road users.
- The cost of administering fuel excise duty refunds. It is not appropriate that costs associated with the fuel excise duty system be met, in part, by users of unrelated administrative services.
- The cost of administering road user charges refunds, investigations and reviews. It is not appropriate to recover the cost of administering refunds from users who, by definition, are entitled to a refund.
- The Ministry of Transport’s forecasting and strategy work. It is appropriate that all road users contribute to meeting the cost of this service.