Why are these increases necessary?
Both petrol excise duty and road user charges are major sources of land transport revenue that helps fund our land transport system. Increases are necessary to ensure that there is sufficient revenue available to invest in the Government’s land transport priorities, as set out in the Government Policy Statement on land transport 2018.
Was there consultation about this increase?
As part of public consultation on GPS 2018, feedback was sought on potential petrol excise duty increases of between three and four cents per litre, with equivalent increases to the rates of road user charges rates. Forecasts showed that three annual increases of 3.5 cents per litre would produce sufficient revenue to fund the Government Policy Statement on land transport 2018, and an equivalent increase for road user charges.
Why are the increases being spread over three years?
It is fairer for individuals and businesses to phase the increases over three years. Attempting to raise all of the necessary additional revenue through a single increase in petrol excise duty and road user charges would have imposed an unreasonable burden, particularly for lower income people.
How much will road user charges increase on 1 July 2019?
All road user charges rates are being increased by approximately 5.5 percent on 1 July 2019 to help achieve the additional revenue required to fund the Government’s land transport priorities 2018.
Note that most rates of road user charges are set to be in whole dollars once GST has been added. Hence the increase to individual rates will not be exactly 5.5 percent. Some will increase slightly more and some slightly less depending on their rounding to the nearest dollar amount.
If you have questions about your vehicle, or what you need to pay, please contact the NZ Transport Agency(external link). The NZ Transport Agency is responsible for collecting (and enforcing) road user charges.
How much will owners of light diesel vehicles have to pay?
Excluding GST, the road user charges rate on 1 July 2019 for most light diesel vehicle owners will increase from $59.13 per 1000 kilometres to $62.61 per 1000 kilometres, an increase of 5.8 percent. Including GST, the increase on 1 July 2019 will be from $68.00 to $72.00.
Why is the RUC increase for light diesel vehicles slightly more than 5.5 percent?
Most road user charges rates are set to be in whole dollars once GST has been added. Hence, the increase to individual rates will not be exactly 5.5percent. Some will increase slightly more and some slightly less depending on rounding to the nearest dollar amount